Other things the same, when a Canadian company imports bicycles from the U.S., the open-economy macroeconomic model treats this transaction as part of the demand for dollars in the U.S. foreign-currency exchange market.

Question

Quizplus · Accepted Answer

The open-economy macroeconomic model treats imports as a demand for foreign currency in the foreign-currency exchange market.

Other Things the Same, When a Canadian Company Imports Bicycles