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:

Instrument Payable

A written document that promises the payment of a definite amount of money either on demand or at a future date.

Definite Time

A specified period in contracts or agreements where certain actions or conditions must be met or take place.

Negotiation

The process of discussing and arriving at a mutual agreement between parties, often involving compromise or the making of concessions.

Holder

An individual or entity that possesses or controls a negotiable instrument, security, or other similar documents, legally recognized as entitled to the benefits of ownership.