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In the open-economy macroeconomic model, the real exchange rate is determined in the market where dollars are exchanged for foreign currency by the equality of

In the open-economy macroeconomic model, the real exchange rate is determined in the market where dollars

are exchanged for foreign currency by the equality of the supply of dollars, which comes from

a.

U.S. national saving and the demand for dollars for U.S. net exports.

b.

U.S. net capital outflow and the demand for dollars for U.S. net exports.

c.

domestic investment and the demand for U.S. net exports.

d.

foreign demand for U.S. goods and U.S. demand for foreign goods.

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