In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is upward sloping.

Question

Quizplus · Accepted Answer

In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is vertical, reflecting that the supply of dollars is determined by the domestic money supply and is not directly affected by the exchange rate.

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