In the Open-Economy Macroeconomic Model,other Things the Same,which of the Following

question 5

Multiple Choice

In the open-economy macroeconomic model,other things the same,which of the following both make the exchange rate fall?

• A)U.S.investment demand falls and foreign demand for U.S.goods falls
• B)U.S.investment demand falls and foreign demand for U.S.goods rises
• C)U.S.investment demand rises and foreign demand for U.S.goods falls
• D)U.S.investment demand rises and foreign demand for U.S.goods rises

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Definitions:

Cash Receipts

The collection of money (currency, checks, or electronic transfers) received by a business from its various sources.

Cash Payments

Transactions involving the transfer of cash from one entity to another, typically in exchange for goods or services.

Debit Balance

The amount that remains in a specific account after accounting for debits and credits, indicating the total debits exceed the total credits.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior, or for a chain of reasoning.