Multiple Choice
In the open-economy macroeconomic model,if the supply of loanable funds shifts right,then
A) net capital outflow increases so the demand for dollars in the market for foreign-currency exchange shifts right.
B) net capital outflow increases so the supply of dollars in the market for foreign-currency exchange shifts right.
C) net capital outflow decreases so the demand for dollars in the market for foreign-currency exchange shifts left.
D) net capital outflow decreases so the supply of dollars in the market for foreign-currency exchange shifts right.
Correct Answer:
Verified
Correct Answer:
Verified
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