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The theory of the portfolio choice suggests that the most important factor affecting the demand and foreign assets is expected return on domestic assets relative
The theory of the portfolio choice suggests that the most important factor affecting the demand and foreign assets is expected return on domestic assets relative to foreign assets. an increase in the expected future domestic exchange rate causes the demand for domestic assets to Question 1_________ increase or decrease? and the domestic currency to Question 2 ______appreciate or depreciate ? everything else held constant.
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