In the open-economy macroeconomic model, other things the same, when a U.S. resident imports a foreign good, the demand for dollars in the foreign-currency exchange market decreases.

Question

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When a U.S. resident imports a foreign good, the U.S. resident must pay for the good in the foreign currency. This increases the demand for the foreign currency in the foreign-currency exchange market and decreases the demand for dollars.

In the Open-Economy Macroeconomic Model, Other Things the Same, When