Ask Question
BusinessBusiness
16 September, 00:05

In the open-economy macroeconomic model, other things the same, which of the following combinations make the exchange rate fall?

a. U. S. investment demand falls and foreign demand for U. S. goods falls

b. U. S. investment demand falls and foreign demand for U. S. goods rises

c. U. S. investment demand rises and foreign demand for U. S. goods falls

d. U. S. investment demand rises and foreign demand for U. S. goods rises

+2
Answers (1)
  1. 16 September, 03:14
    0
    The correct answer is option A.

    Explanation:

    When there is an decline in the investment demand less money will be demanded domestically in U. S.

    When people from foreign nations buy goods from U. S, they pay in dollars. So, in order to pay they demand U. S dollars. A fall in the demand for U. S goods in the international market will further lead to a decline in the demand for U. S dollars by the foreign consumers.

    A decline in the demand for currency will lead to fall in the exchange rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the open-economy macroeconomic model, other things the same, which of the following combinations make the exchange rate fall? a. U. S. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Common-size statements: Multiple Choice Reveal changes in the relative importance of each financial statement item to a base amount. Do not emphasize the relative importance of each item. Compare financial statements over time.
Answers (1)
Beth is conducting a risk assessment. She is trying to determine the impact a security incident will have on the reputation of her company.
Answers (1)
The number of buyers in B2B markets is Multiple Choice controlled by government regulation. roughly the same as the number of buyers in the consumer market. relatively small compared to the consumer market.
Answers (1)
On July 1, Morris Company paid $17,400 for two years of insurance in advance. Morris debited Prepaid Insurance. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on?
Answers (1)
Evergreen Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year.
Answers (2)
New Questions in Business
In the Reaching Beyond our Borders box titled, "Ethical Culture Clash", the story proves that a large multi-national company such as Motorola can ask its employees, and should expect them to follow the same ethical standards they would practice if
Answers (1)
Kier Company issued $600,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to maturity. The bonds have a 6.00% stated rate of interest and interest is payable in cash on December 31 each year.
Answers (1)
Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?
Answers (1)
Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs.
Answers (1)
You sell a put option on S&P 500 index with the strike price of 3300. Suppose the S&P 500 index is 3000 on the option expiration date. What is your payoff?
Answers (1)
Home » Business » In the open-economy macroeconomic model, other things the same, which of the following combinations make the exchange rate fall? a. U. S. investment demand falls and foreign demand for U. S. goods falls b. U. S.
Sign Up Forgot Password?