In the Open-Economy Macroeconomic Model,as the Exchange Rate Rises

question 54

Multiple Choice

In the open-economy macroeconomic model,as the exchange rate rises,

• A)desired net exports fall,so the quantity of dollars supplied rise.
• B)desired net exports fall,so the quantity of dollars demanded falls.
• C)desired net exports rise ,so the quantity of dollars supplied falls.
• D)desired net exports rise,so the quantity of dollars demanded rises.

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Definitions:

Decision Making

The process of selecting among alternatives to achieve a goal or solve a problem.

Fairness Concerns

Issues or discussions surrounding the equitable treatment, distribution of resources or opportunities, and justice in societal, economic, or individual contexts.

Subjective

Subjective pertains to personal opinions, feelings, or tastes, as opposed to objective facts or universal truths.

Overconfidence Effect

A cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.