At the equilibrium real exchange rate, the demand for dollars to buy:
A)foreign assets exactly balances the supply of dollars to be exchanged into foreign currency to buy domestic assets
B)net exports exactly balances the supply of dollars to be exchanged into foreign currency to buy net imports
C)foreign assets exactly balances the supply of dollars to be exchanged into foreign currency to buy net exports
D)net exports exactly balances the supply of dollars to be exchanged into foreign currency to buy foreign assets

Question

Quizplus · Accepted Answer

The Answer of At the equilibrium real exchange rate, the demand for dollars to buy:
A)foreign assets exactly balances the supply of dollars to be exchanged into foreign currency to buy domestic assets
B)net exports exactly balances the supply of dollars to be exchanged into foreign currency to buy net imports
C)foreign assets exactly balances the supply of dollars to be exchanged into foreign currency to buy net exports
D)net exports exactly balances the supply of dollars to be exchanged into foreign currency to buy foreign assets

At the Equilibrium Real Exchange Rate, the Demand for Dollars