In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

question 40

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds shifts right,then

• A)the supply of dollars in the market for foreign-currency exchange shifts left.
• B)the supply of dollars in the market for foreign-currency exchange shifts right.
• C)the demand for dollars in the market for foreign-currency exchange shifts left.
• D)the demand for dollars in the market for foreign-currency exchange shifts right.

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Definitions:

Activation-Synthesis Hypothesis

The Activation-Synthesis Hypothesis is a theory that dreams are created by the brain synthesizing and making sense of internal biological signals during REM sleep.

REM Sleep

A stage of sleep characterized by rapid eye movement, increased brain activity, vivid dreaming, and temporary paralysis of muscle systems apart from the eyes and respiratory muscles.

Dopaminergic Hypothesis

A theory suggesting that the imbalance of dopamine levels in the brain is a significant factor in the development of certain psychiatric disorders, especially schizophrenia.

Freudian Cathartic Hypothesis

A theory suggesting that releasing and confronting pent-up emotions through talking about one’s problems can lead to psychological healing.