A German company wants to buy dollars to purchase U.S. bonds. In the open-economy macroeconomic model of the U.S., this transaction would be accounted for in
a. the supply of currency in the foreign exchange market, and the supply of loanable funds.
b. the supply of currency in the foreign exchange market, and the demand for loanable funds.
c. the demand for currency in the foreign exchange market, and the supply of loanable funds.
d. the demand for currency in the foreign exchange market, and the demand for loanable funds.
b
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All monopolies exist because of:
a. firms' desire to maximize profits. b. failure of antitrust laws. c. barriers to entry. d. natural selection.
Entrepreneurs reveal
A) things that the market knew. B) things that the market did not know. C) things that the government knew. D) things that were previously known.
The global capital market is very competitive and efficient
Indicate whether the statement is true or false
The benefits of international trade include
a. more choice for consumers b. efficiency gains from specialization c. more competition d. all of the above e. (a) and (c) only