In the Open-Economy Macroeconomic Model,the Quantity of Dollars Demanded in the Market

question 108

Multiple Choice

In the open-economy macroeconomic model,the quantity of dollars demanded in the market for foreign-currency exchange

• A)depends on the real exchange rate.The quantity of dollars supplied in the foreign-exchange market depends on the real interest rate.
• B)depends on the real interest rate.The quantity of dollars supplied in the foreign-exchange market depends on the real exchange rate.
• C)and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real exchange rate.
• D)and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real interest rate.

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Definitions:

Orchid

A diverse and widespread family of flowering plants with blooms that are often colorful and fragrant, known for their complex structures.

Tree Trunk

The main wooden axis of a tree, supporting branches and leaves and transporting nutrients and water.

Coevolve

The process by which two or more species influence the evolution of each other, often due to close ecological interactions over time.

Symbiosis

One species lives in or on another in a commensal, mutualistic, or parasitic relationship.