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EC 102.07-08-09Exercises for Chapter 32SPRING 20061.Which of the following is included in the supply of dollars in the market for foreign-currency exchange in theopen-economy macroeconomic model?a.A retail outlet in Afghanistan wants to buy watches from a U.S. manufacturer.b.A U.S. bank loans dollars to Blair, a U.S. resident, who wants to purchase a new car made in the UnitedStates.c.A U.S. based mutual fund wants to purchase stocks issued by a Polish company.d.All of the above are correct.ANSWER: c.A U.S. based mutual fund wants to purchase stocks issued by a Polish company.
2.If there is a shortage of loanable funds,
3.In the open-economy macroeconomic model, the quantity of YTLs demanded in the foreign-currencyexchange market
4.The value of net exports equals the value of
5.In an open economy the supply of loanable funds comes froma.national savings. Demand comes from only domestic investment.b.national savings. Demand comes from domestic investment and net capital outflow.c.Only net capital outflow. Demand for loanable funds comes from national savings.d.domestic investment and net capital outflow. Demand for loanable funds comes from national savings.ANSWER: b.national savings. Demand comes from domestic investment and net capital outflow.

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Term
Fall
Professor
STAFF
Tags
Macroeconomics, United States dollar, net capital outflow
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
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Chapter 19 / Exercise 6
Exploring Economics
Sexton
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