When capital mobility is perfect, interest rate differentials will tend to be offset by ________ | Faculties

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Praveen Singh

🎓 Tutor III ⭐ 36.81K Points

📊 International Economics

Q. When capital mobility is perfect, interest rate differentials will tend to be offset by ________

(A) price differences
(B) balance of payments differences
(C) current account differences
(D) expected exchange rate changes

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✅ Correct Answer: (D) expected exchange rate changes

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