With Imperfect Substitutability,investors Will Hold More Foreign Assets Only If

question 20

True/False

With imperfect substitutability,investors will hold more foreign assets only if they are compensated for risks.

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Definitions:

Trembling

Involuntary shaking or quivering movements, often resulting from emotional states, cold, or medical conditions.

James-Lange Theory

A theory of emotion that proposes emotions result from our interpretation of bodily reactions to stimuli rather than from an emotional state causing physiological responses.

Physiological Responses

Automatic reactions of the body to certain stimuli, which include changes in heart rate, hormone levels, and muscle tension, among others.

Emotional Response

An individual's psychological and physical reactions to experiences or stimuli that are significant to them.