In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is upward sloping.

Question

Sayra Campos · Accepted Answer

Final Answer : False, Explanation :  In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is vertical, reflecting that the supply of dollars is determined by the domestic money supply and is not directly affected by the exchange rate.

In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is upward sloping.

Definitions

Learning Objectives

Learning Objectives

Related questions