question archive In an open economy, why is the supply curve in the foreign currency exchange market vertical? a
In an open economy, why is the supply curve in the foreign currency exchange market vertical? a
Subject:EconomicsPrice: Bought3
In an open economy, why is the supply curve in the foreign currency exchange market vertical?
a. Net capital outflow is determined by the real interest rate, not the real exchange rate.
b. Net capital outflow is extremely sensitive to small changes in the real exchange rate.
c. Net capital outflow equals net exports.
d. Net capital outflow is determined by real GDP, not the real exchange rate.
e. None of the above.
