In the Open-Economy Macroeconomic Model,the

question 32

Multiple Choice

In the open-economy macroeconomic model,the

• A)exchange rate adjusts to equate private saving with the sum of investment,net exports,and net capital outflow.
• B)exchange rate adjusts to equate national saving with the sum of investment and net capital outflow.
• C)interest rate adjusts to equate private saving with the sum of investment,net exports,and net capital outflow.
• D)interest rate adjusts to equate national saving with the sum of investment and net capital outflow.

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Definitions:

European Exploration

The period of history where European powers explored, colonized, and interacted with the rest of the world, vastly expanding their knowledge and influence.

Natural Environment

The physical, chemical, and biological systems and conditions that exist in the outer layer of Earth, excluding human creations.

Crops

Cultivated plants or agricultural produce, such as grain, vegetables, or fruit, grown and harvested extensively for profit or subsistence.

Great League Of Peace

An alliance of the Iroquois tribes, originally formed sometime between 1450 and 1600, that used their combined strength to pressure Europeans to work with them in the fur trade and to wage war across what is today eastern North America.