In the open-economy macroeconomic model,the supply of dollars in the market for foreign-currency exchange comes from
A)net exports
B)net capital outflow
C)net exports + net capital outflow
D)net exports - net capital outflow

Question

Quizplus · Accepted Answer

In an open-economy macroeconomic model, the supply of dollars in the foreign-currency exchange market is determined by net capital outflow, which represents the purchase of foreign assets by domestic residents.

In the Open-Economy Macroeconomic Model,the Supply of Dollars in the Market