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.
a
You might also like to view...
The concept that an additional dollar of expenditures will result in the creation of more than one dollar's worth of real GDP is called
A. the multiplier effect. B. economic growth. C. the business cycle. D. fiscal policy.
A supply curve for a good illustrates the production choices of a firm based on average costs
a. True b. False Indicate whether the statement is true or false
Assume that a 4 percent increase in income results in a 2 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is
a. negative, and the good is an inferior good. b. negative, and the good is a normal good. c. positive, and the good is a normal good. d. positive, and the good is an inferior good.
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 21 to 23 brushes the opportunity cost of producing one more comb in terms of brushes is
A. 4. B. 1/21. C. 1/2. D. 21/23.