In the open-economy macroeconomic model, net exports equal the quantity of dollars demanded in the market for foreign currency exchange.

Question

Quizplus · Accepted Answer

Net exports are the value of a country's exports minus the value of its imports. In the open-economy macroeconomic model, the quantity of dollars demanded in the market for foreign currency exchange is equal to the value of imports. Therefore, net exports are equal to the quantity of dollars demanded in the market for foreign currency exchange.

In the Open-Economy Macroeconomic Model, Net Exports Equal the Quantity