In the Open-Economy Macroeconomic Model, If Investment Demand Increases, Then

question 332

Multiple Choice

In the open-economy macroeconomic model, if investment demand increases, 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:

Investment Center

A division within a corporation that directly contributes to the company's profit through its investments and capital management.

Return on Investment

A financial ratio that calculates the gain or loss generated on an investment relative to the amount of money invested, expressed as a percentage.

Invested Assets

Resources or capital that have been allocated to investments such as stocks, bonds, real estate, or other vehicles with the expectation of earning a return.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct production costs (also known as overheads).