32-3 Thank you in advance!! In the open-economy macroeconomic model, if the supp

Question

32-3 Thank you in advance!!

In the open-economy macroeconomic model, if the supply of loanable funds shifts left the interest rate rises and the supply of 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 right. the Interest rate falls and the demand for dollars in the market for foreign currency exchange shifts left. the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts left.

Explanation / Answer

b. the interest rate falls and the demand for dollars in the market for foreign currency exchange shifts right.

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