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

question 34

Multiple Choice

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

• A)the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts right.
• B)the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts left.
• C)the interest rate falls and the demand for dollars in the market for foreign currency exchange shifts right.
• D)the interest rate falls and the demand for dollars in the market for foreign currency exchange shifts left.

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Definitions:

Value Chain

The sequence of activities carried out by organizations to create valued goods and services to consumers.

Open System Chain

A concept in systems theory referring to the interconnectedness and interaction between a system and its external environment, allowing for exchange of information, energy, and materials.

Production

refers to the process of creating goods and services through the combination of human labor, materials, and technology.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness.