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Following a report of additional investing RiSK in country A (the domestic currency, FA), the balance of payments re-equilibration occurs in which order? The DC

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Following a report of additional investing RiSK in country A (the domestic currency, FA), the balance of payments re-equilibration occurs in which order? The DC appreciates The tx re-egulibrates to a new equllibrium Foreign agonts increase their demand for the domestic currency (DC) in the FX market to invest (D) Foreign agents decrease their interest in domestic investment (Di) Foreign agents decrease their demand for the domestic currency (DC) in the FX market to invest (DI) The DC depreciates The foreign interest in D1 increases The relative price (RP) of DI decreases (ie. it takes less FC to buy the DC to irvest in the same amount of DI)

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