In the Open-Economy Macroeconomic Model,equilibrium in the Market for Foreign-Currency

question 78

Multiple Choice

In the open-economy macroeconomic model,equilibrium in the market for foreign-currency exchange is determined by the equality between the supply of dollars which comes from

• A)U.S.national saving and the demand for dollars for U.S.net exports.
• B)U.S.net capital outflow and the demand for dollars for U.S.net exports.
• C)domestic investment and the demand for U.S.net exports.
• D)foreign demand for U.S.goods and services and U.S.demand for foreign goods and services.

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Definitions:

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