In the Open-Economy Macroeconomic Model,if There Is a Surplus in the Market

question 46

Multiple Choice

In the open-economy macroeconomic model,if there is a surplus in the market for foreign-currency exchange,which of the following will move the market to equilibrium?

• A)the real exchange rate depreciates and net exports fall.
• B)the real exchange rate depreciates and net exports rise.
• C)the real exchange rate appreciates and net exports fall.
• D)the real exchange rate appreciates and net exports rise.

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Definitions:

Major Organic

Refers to the primary organic compound of interest in a mixture or reaction that is present in the largest amount or importance.

Stereochemical

Stereochemical pertains to the study and description of the spatial arrangements of atoms within molecules and the impact of these arrangements on the properties and reactions of the molecules.

Regio-

A prefix used in chemistry to describe directionality or specific regions in molecules, particularly important in reactions with more than one possible outcome.

Major Organic

Refers to the primary organic (carbon-containing) compound or product resulting from a chemical reaction.