In the Open-Economy Macroeconomic Model,the Quantity of Dollars Demanded in the Market

question 108

Multiple Choice

In the open-economy macroeconomic model,the quantity of dollars demanded in the market for foreign-currency exchange

• A)depends on the real exchange rate.The quantity of dollars supplied in the foreign-exchange market depends on the real interest rate.
• B)depends on the real interest rate.The quantity of dollars supplied in the foreign-exchange market depends on the real exchange rate.
• C)and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real exchange rate.
• D)and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real interest rate.

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Definitions:

Assignment Notice

A formal notification that an assignment, often of a contract or legal right, has been made to another party.

Expressly Prohibits

Explicitly forbids certain actions or uses, often found within contractual or legal language to remove ambiguity.

Payment of Money

The act of transferring money from one party to another as a form of exchange for goods, services, or to settle debts.

Notice

A formal communication informing a party of an action, decision, or legal requirement that impacts them.