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:

Average Investment

The mean amount of money invested in an asset or portfolio over a specific period.

Capital Investment Proposals

Involve plans for significant spending on projects expected to generate revenue or reduce expenses in the long-term.

Long-term Goals

Objectives or plans that are intended to be achieved over an extended period, typically exceeding one year.

Fixed Asset

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.