The DD schedule shows all combinations of which 2 variables so that the output market is in equilibrium?
A) imports and exports
B) exports and the exchange rate
C) foreign prices and the exchange rate
D) output and the exchange rate
E) output and exports

Question

Quizplus · Accepted Answer

The DD schedule represents the combinations of output and the exchange rate that ensure equilibrium in the goods market and the money market simultaneously.

The DD Schedule Shows All Combinations of Which 2 Variables