False, in the open-economy macroeconomic model, net capital outflow does not link the markets for loanable funds and foreign-currency exchange.
What is foreign-currency ?
- Foreign currency, also known as foreign exchange, is the conversion of one country's currency into another country's currency.
- The value of a particular currency is determined by market forces related to trade, investment, tourism and geopolitical risk.
- The foreign currency market is the market in which foreign currencies such as yen, euros and pounds are traded against domestic currencies such as the US dollar.
- Exchange rates are variable or fixed.
- Floating exchange rates go up and down due to changes in the foreign exchange market.
- A foreign currency rate is linked to the value of another currency.
- The Hong Kong dollar is pegged to the US dollar between 7.75 and 7.85.
- Without them, it is nearly impossible to determine the value of imported and exported goods and services in different countries.
To learn more about foreign-currency from the given link :
https://brainly.com/question/15874744
#SPJ4
