In the trade flow model,U.S.imports of goods and services will create a supply of U.S.dollars and foreign imports of U.S.goods and services will create a demand for U.S.dollars.

Question

Quizplus · Accepted Answer

According to the trade flow model, when the U.S. imports goods and services, it creates a supply of U.S. dollars in the foreign exchange market. On the other hand, when foreign countries import goods and services from the U.S., they create a demand for U.S. dollars. Therefore, the statement is true.

In the Trade Flow Model,U