When domestic and foreign currency bonds are imperfect substitutes, the domestic interest rate (R) can be written as
A) R = R - (Ee - E)/E + ?.
B) R = R - (Ee - E)/E.
C) R = R + (Ee - E)/E + ?.
D) R = R - (Ee + E)/E + ?.
E) R = R - (Ee - E)?.
C
Economics
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