As the price level rises, the interest rate a- rises, so the supply of dollars in the market for foreign currency exchange shifts right. b- rises, so the supply of dollars in the market for foreign currency exchange shifts left. c- falls, so the supply of dollars in the market for foreign currency exchange shifts left. d- falls, so the supply of dollars in the market for foreign currency exchange shifts right.

As the price level rises, the interest rate a- rises, so the supply of dollars in the market for foreign currency exchange shifts right. b- rises, so the supply of dollars in the market for foreign currency exchange shifts left. c- falls, so the supply of dollars in the market for foreign currency exchange shifts left. d- falls, so the supply of dollars in the market for foreign currency exchange shifts right.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 5PA

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