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Assume the Home country has a flexible exchange rate regime. If Foreign and Home bonds are perfect substitutes (there is no risk-premium) then a sterilized

Assume the Home country has a flexible exchange rate regime. If Foreign and Home bonds are perfect substitutes (there is no risk-premium) then a sterilized sale of foreign currency (FX) by the Home country will have no effect on the exchange rate E. Agree or disagree? Briefly explain.

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