Multiple Choice
An increase in real interest rates leads to
A) a decrease in exports and an increase in imports.
B) an increase in both exports and imports.
C) a decrease in both exports and imports.
D) an increase in exports and a decrease in imports.
E) no change in either exports or imports.
Correct Answer:

Verified
Correct Answer:
Verified
Q46: There is an inverse relationship between real
Q47: If firms and workers expect prices to
Q48: In order for the aggregate demand (AD)
Q49: According to the monetary policy rule, the
Q50: Since inflation tends to rise when the
Q52: The positive correlation between real interest rates
Q53: Which of the following best explains why
Q54: A decrease in the target inflation rate
Q55: The Federal Reserve has an explicit inflation
Q56: The table below shows the price level