Question

In: Economics

Where does the supply of dollars in the foreign-currency exchange market come from?

Where does the supply of dollars in the foreign-currency exchange market come from?

            a.         from Canadian national saving

            b.         from Canadian net capital outflow

            c.          from domestic investment

            d.         from foreign demand for Canadian goods

Solutions

Expert Solution

The supply of dollars in the foreign-currency exchange market come from Canadian net capital outflow. Hence,option(B) is correct.


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