In the Market for Foreign-Currency Exchange in the Open Economy

question 38

Multiple Choice

In the market for foreign-currency exchange in the open economy macroeconomic model,the amount of net capital outflow represents the quantity of dollars

• A)supplied for the purpose of selling assets domestically.
• B)supplied for the purpose of buying assets abroad.
• C)demanded for the purpose of buying U.S.net exports of goods and services.
• D)demanded for the purpose of importing foreign goods and services.

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Definitions:

Shipment Contract

A contractual agreement where the seller is obligated to transport goods to a specific destination, with risk passing to the buyer when the goods are delivered to the carrier.

F.O.B. Hilltop Farm

A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.

Intrastate Trucking Company

A company that operates trucks only within the boundaries of a single state, not crossing any state lines.

Lost In A Fire

Describes items, possessions, or assets that have been destroyed or severely damaged due to a fire incident.