In the Open-Economy Macroeconomic Model,equilibrium in the Market for Foreign-Currency

question 78

Multiple Choice

In the open-economy macroeconomic model,equilibrium in the market for foreign-currency exchange is determined by the equality between the supply of dollars which comes from

• A)U.S.national saving and the demand for dollars for U.S.net exports.
• B)U.S.net capital outflow and the demand for dollars for U.S.net exports.
• C)domestic investment and the demand for U.S.net exports.
• D)foreign demand for U.S.goods and services and U.S.demand for foreign goods and services.

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Definitions:

Shocks

Sudden, unexpected events or disturbances that can cause significant changes or adverse effects in a system or organism.

Shock Plate

A device typically used in experimental research to deliver a shock to an animal subject as a form of aversive stimulus.

Obeyed

The action of following the commands, restrictions, or wishes of someone or something with authority.

Milgram Shock Experiment

An experimental social psychology study by Stanley Milgram measuring the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.