In the open-economy marcoeconomic model., if the supply of loanable funds shifts

Question

In the open-economy marcoeconomic model., if the supply of loanable funds shifts left the internal rate rises and the supply of dollars in the market for foreign currency exchange shifts right the interest rate rises and the supply of dollars in the market for the foreign currency exchange shifts left. The interest rate falls and the demand for dollars in the market for foreign currency exchange shifts right the interest rate falls and the demand for dollars in the market for foreign currency exchange shifts left. An increase in the budget deficit reduces investment because the interest rate rises.

Explanation / Answer

43. B interest rates rise and supply in exhange market shift left

42 D U.S ciizen wants o buy more foreign goods

41 B U.S bank gives loan to a U.S citizen

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