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In the open-economy macroeconomic model, if there were a surplus in the market for foreign-currency exchange,...

In the open-economy macroeconomic model, if there were a surplus in the market for foreign-currency exchange, the real exchange rate would appreciate. a. True b. False

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In the open-economy macroeconomic model, if there were a surplus in the market for foreign-currency exchange, the real exchange rate would depreciate and the net exports would rise. So, the statement is False.

Answer is False.

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