In an open economy, what is the source of demand for dollars in the foreign-currency exchange...

Question

Question

In an open economy, what is the source of demand for dollars in the foreign-currency exchange market?

Answer 1

✔ Recommended Answer

Answer #1

The answer is option a- Net Exports

In an open economy, what is the source of demand in the foreign-currency exchange market- Net Exports

Answer 2

Similar Homework Help Questions

In an open economy, what is the source of demand in the foreign-currency exchange market? A....

In an open economy, what is the source of demand in the foreign-currency exchange market? A. National saving B.Net exports C.Net capital outflow D.Imports
2. Introduction to the foreign-currency exchange market In an open economy, what is the source of...

2. Introduction to the foreign-currency exchange market In an open economy, what is the source of supply in the foreign-currency exchange market? Net exports Exports Net capital outflow Investment and net capital outflow
In an open economy, the source of the demand for loanable funds is Group of answer...

In an open economy, the source of the demand for loanable funds is Group of answer choices investment + the government budget deficit investment + net capital outflow national saving + net capital outflow national saving

using the market for loanable Funds and the market for Foreign Currency exchange, How does an...

using the market for loanable Funds and the market for Foreign Currency exchange, How does an investment tax credit affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rat, and balance? the trade
In a large open economy, what is the source of the domestic supply of loanable funds?...

In a large open economy, what is the source of the domestic supply of loanable funds? A. Net capital outflow B. National saving and investment C. National saving D. Investment
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

2. An appreciation of a nation's currency can be the result of which of the folowing?...

2. An appreciation of a nation's currency can be the result of which of the folowing? a. an increase in net exports b. a decrease in net exports c. a fal in national saving d. a decrease in domestic demand for investment 3. The government n an open economy increases spending. As a resut, the supply of loanable funds from national saving_ leading to an). . net capital outflow and a real exchange rate / a. fals, reduced, appreciation b....
One source of the supply of dollars in the foreign exchange rate market is Group of...

One source of the supply of dollars in the foreign exchange rate market is Group of answer choices the sale of U.S. domestic financial assets to foreigners. imports of merchandise into the United States. gold sold to foreigners. the purchase of U.S. exports.
4. Net capital outflow and net exports An open economy interacts with the rest of the world throu...

4. Net capital outflow and net exports An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world financial markets. Although it can often result in an imbalance in these markets, the following identity must remain true Net Capital Outflow - Net Exports In other words, if a transaction directly affects the left side of this equation, then it must also affect the right side. The following problem will...

3. E ffects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domesti...

3. Effects of a government budget deficit Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Given the information in the preceding table, use the blue points (circle symbol) to plot the demand for loanable funds. Next, use the orange points (square symbol)...