Multiple Choice
Which of the following best describes the relationship between real interest rates and net exports?
A) The relationship is positive.
B) There is no relationship because both imports and exports are unaffected by real interest rates.
C) The relationship is negative.
D) It is not possible to determine the relationship between the two because exports are negatively related to interest rates and imports are positively related to real interest rates.
E) It is not possible to determine the relationship between the two because exports are positively related to real interest rates and imports are negatively related to real interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
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Q3: All else held constant, interest rates will
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Q8: The steeper the consumption share line, the
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Q11: A tax cut has the same long-run