Figure 32-3 Refer to the Following Diagram of the Open-Economy Macroeconomic Model

Multiple Choice

Figure 32-3
Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow.
​
Graph (a)
Graph (b) Graph (c) ​
-Refer to Figure 32-3. At an interest rate of 4 percent, the diagram indicates that

A) there is a surplus in the market for foreign-currency exchange.
B) national saving equals domestic investment.
C) net capital outflow + domestic investment = national saving.
D) in the market for foreign-currency exchange the quantity of dollars supplied equals the quantity of dollars demanded.