Multiple Choice
A U.S.bank wants to buy euros in order to buy German bonds.In the open-economy macroeconomic model,this transaction would be part of
A) the supply of currency in the foreign exchange market,and part of the supply of loanable funds.
B) the demand for currency in the foreign exchange market,and part of the supply of loanable funds.
C) the supply of currency in the foreign exchange market,and part of the demand for loanable funds.
D) the demand for currency in the foreign exchange market,and part of the demand for loanable funds.
Correct Answer:
Verified
Correct Answer:
Verified
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