If the nominal expected return on foreign assets is higher than on dollar assets ________.
A) foreigners will want to hold additional dollar assets
B) Americans will want to hold additional dollar assets
C) foreigners will want to hold fewer foreign assets
D) foreigners will want to hold additional foreign assets
Question 2
Increases in interest rates
A) reduce borrowers' net worth.
B) reduce lenders' net worth.
C) increase the present value of borrowers' assets.
D) raise the cost to businesses of internal funding.
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