Multiple Choice
In the open-economy macroeconomic model,the quantity of dollars demanded in the market for foreign-currency exchange
A) depends on the real exchange rate.The quantity of dollars supplied in the foreign-exchange market depends on the real interest rate.
B) depends on the real interest rate.The quantity of dollars supplied in the foreign-exchange market depends on the real exchange rate.
C) and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real exchange rate.
D) and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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