In the Open-Economy Macroeconomic Model,if There Is a Surplus in the Market

question 46

Multiple Choice

In the open-economy macroeconomic model,if there is a surplus in the market for foreign-currency exchange,which of the following will move the market to equilibrium?

• A)the real exchange rate depreciates and net exports fall.
• B)the real exchange rate depreciates and net exports rise.
• C)the real exchange rate appreciates and net exports fall.
• D)the real exchange rate appreciates and net exports rise.

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