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:

pH

A numeric scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 (acidic) to 14 (basic).

Buffers

Solutions or substances that minimize changes in pH when acids or bases are added to them, maintaining stability in biological and chemical systems.

Neutralization Reaction

A chemical reaction in which an acid and a base react to form water and a salt, achieving a balanced pH.

Salt

An ionic compound resulting from the neutralization reaction of an acid and a base, commonly exemplified by sodium chloride.