In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

question 40

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds shifts right,then

• A)the supply of dollars in the market for foreign-currency exchange shifts left.
• B)the supply of dollars in the market for foreign-currency exchange shifts right.
• C)the demand for dollars in the market for foreign-currency exchange shifts left.
• D)the demand for dollars in the market for foreign-currency exchange shifts right.

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Definitions:

Held To Maturity

An accounting classification for debt securities that a company intends and is able to hold until they mature.

Accrued Interest

Interest that has been incurred but not yet paid over a specified period, typically relating to bonds or loans.

Bond Interest Rate

The percentage of interest that bond issuers must pay to bondholders, typically expressed as an annual rate.

Semiannually

Occurring twice a year; used to describe the frequency with which certain financial or operational events take place, such as interest payments on bonds.