Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

1) In the open-economy macroeconomic model, if investment demand increases, then a

Economics May 18, 2021

1) In the open-economy macroeconomic model, if investment demand increases, then
a. the supply of dollars in the market for foreign-currency exchange shifts left.
b. the supply of dollars in the market for foreign-currency exchange shifts right.
c. the demand for dollars in the market for foreign-currency exchange shifts left.
d. the demand for dollars in the market for foreign-currency exchange shifts right.

2) In an open economy the supply of loanable funds comes from

national saving. Demand comes from only domestic investment

national saving. Demand comes from domestic investment and net capital outflow.

only net capital outflow. Demand for loanable funds comes from national saving.

domestic investment and net capital outflow. Demand for loanable funds comes from national saving.

Expert Solution

Answer:

1.

d. the demand for dollars in the market for foreign-currency exchange shifts right

2.

national savings. Demand comes from domestic investment and net capital outflow.

because savings become part of the banking systems through deposits which are lend to the borrowers.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment