What Is the Price That Balances Supply and Demand in the Market

question 73

Multiple Choice

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

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

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Definitions:

Interference

In legal contexts, actions that improperly obstruct or prevent an activity or process, such as contract performance or business operations.

Rent

The compensation paid to a landlord for the tenant’s right to possession and exclusive use of the premises.

Possession

The act or state of owning, controlling, or having an item or property in one's physical custody.

Exclusive Use

A clause in a lease or agreement granting one party the sole right to use a property, asset, or service in a specified way.