In the Open-Economy Macroeconomic Model,if a Country's Supply of Loanable

question 6

Multiple Choice

In the open-economy macroeconomic model,if a country's supply of loanable funds shifts right,then

• A)net capital outflow rises,so the exchange rate rises.
• B)net capital outflow rises,so the exchange rate falls.
• C)net capital outflow falls,so the exchange rate rises.
• D)net capital outflow falls,so the exchange rate falls.

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Definitions:

Purchase Returns And Allowances

Transactions where a buyer returns goods to the seller or receives a reduction in the purchase price for unsatisfactory goods.

Purchase Discounts

Reductions in price granted by suppliers to buyers for prompt payment or purchase volume.

Net Purchases

The total amount of goods purchased for resale, minus returns and allowances, plus freight and other acquisition costs.

Net Sales

Net sales is the total revenue from goods and services sold by a business, minus returns, allowances, and discounts, indicating the actual sales revenue.