How would you define a DD schedule?
A) the combinations of output and the exchange rate that must hold when the home money market and the foreign exchange market are in equilibrium
B) the combinations of output and the exchange rate that must hold when the output market is in short-run equilibrium
C) factors of production in the long run
D) the aggregate demand in relation to the foreign market value
E) the currency depreciation in relation to the exchange rate

Question

Quizplus · Accepted Answer

The DD schedule represents the combinations of output and the exchange rate that ensure the output market is in short-run equilibrium, reflecting the relationship between these variables when the goods market is balanced.

How Would You Define a DD Schedule