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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Definitions:

Four-Cylinder Engine

An internal combustion engine with four cylinders arranged in a straight line, commonly found in small to medium-sized vehicles.

Power

The rate at which work is done or energy is transferred in a unit of time.

Degrees

A unit of measurement for angles, or a measure of temperature.

Crankshaft Rotation

The movement of an engine's crankshaft, converting linear motion from pistons into rotational motion for power.