Which of the Following Is Correct Concerning the Open-Economy Macroeconomic

question 107

Multiple Choice

Which of the following is correct concerning the open-economy macroeconomic model?

• A)The net-capital-outflow curve slopes downward.
• B)The key determinant of net capital outflow is the real exchange rate.
• C)The supply of dollars in the market for foreign-currency exchange is horizontal.
• D)None of the above is correct.

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Definitions:

Market Approach

A method used to value a business or asset based on the price at which similar companies or assets have been sold.

Directly Related

A term describing entities or factors that are connected in a straightforward and immediate way, influencing each other's behavior or outcomes.

Firm Bidding

A procurement and contracting method where bidders submit fixed price proposals that cannot be altered after submission.

Best-And-Final-Offers

Best-and-final offers are the last and most competitive bids or proposals requested from suppliers or contractors during a negotiation, after which a selection is made.