5. In order for an individual to be indifferent between holding foreign or domesti bonds, A. the Marshall-Lerner condition must hold. B. the foreign and domestic interest rates must be equal. C. the expected rate of depreciation of the domestic currency is zero. D. the interest parity condition must hold.

5. In order for an individual to be indifferent between holding foreign or domesti bonds, A. the Marshall-Lerner condition must hold. B. the foreign and domestic interest rates must be equal. C. the expected rate of depreciation of the domestic currency is zero. D. the interest parity condition must hold.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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