Multiple Choice
Which of the following is true when the foreign real interest rate rises,assuming everything else remains constant?
A) The exchange rate rises,and net exports decline.
B) The exchange rate rises,and net exports increase.
C) The exchange rate falls,and net exports decline.
D) The exchange rate falls,and net exports increase.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: A fall in the real exchange rate
Q3: If the nominal exchange rate rises 2%,domestic
Q7: The real exchange rate is<br>A)the number of
Q8: A decrease in the exchange rate under
Q9: The reason that fiscal policy is ineffective
Q10: The relative purchasing power parity is<br>A)a relationship
Q11: The Intertemporal external balance curve will be
Q28: The real exchange rate is<br>A)the price of
Q45: Describe the effects of contractionary fiscal policy
Q60: Currency unions are rare because<br>A)they're to no