In the Open Economy Macroeconomic Model,the Price That Balances Supply

question 136

Multiple Choice

In the open economy macroeconomic model,the price that balances supply and demand in the market for foreign-currency exchange model is the

• A)nominal exchange rate.
• B)nominal interest rate.
• C)real exchange rate.
• D)real interest rate.

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Definitions:

Elaboration

Mnemonic strategy of making mental associations involving items to be remembered.

Organization

(1) Piaget’s term for the creation of categories or systems of knowledge. (2) Mnemonic strategy of categorizing material to be remembered.

Technique

A specific way of carrying out a particular task, often implying a skillful or efficient method.

Moral Reasoning

The process of determining right and wrong in scenarios, guided by personal, cultural, or societal standards of behavior.