Which of the following means that international capital flows will be highly responsive to the slightest change in a country’s interest rates?
A. a domestic monetary shock
B. perfect capital mobility
C. an international capital-flow shock
D. sterilization
Answer:B
Which of the following means that international capital flows will be highly responsive to the slightest change in a country’s interest rates?
A. a domestic monetary shock B. perfect capital mobility C. an international capital-flow shock D. sterilization