If a U.S. resident purchases a foreign bond, her transactions are included

a. in the U.S. supply of loanable funds and the supply of dollars in the market for foreign-currency exchange.
b. in the U.S. supply of loanable funds and the demand for dollars in the market for foreign-currency exchange.
c. in the U.S. demand for loanable funds and the supply of dollars in the market for foreign-currency exchange.
d. in the U.S. demand for loanable funds and the demand for dollars in the market for foreign-currency exchange.


Ans: c. in the U.S. demand for loanable funds and the supply of dollars in the market for foreign-currency exchange.

Economics

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