In the Open-Economy Macroeconomic Model,a Higher U

question 86

Multiple Choice

In the open-economy macroeconomic model,a higher U.S.real exchange rate makes

• A)U.S.goods more expensive relative to foreign goods and reduces the quantity of dollars supplied.
• B)U.S.goods more expensive relative to foreign goods and reduces the quantity of dollars demanded.
• C)foreign goods more expensive relative to U.S.goods and reduces the quantity of dollars supplied.
• D)foreign goods more expensive relative to U.S.goods and reduces the quantity of dollars demanded.

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