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    Macroeconomics Study Set 10
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    Exam 13: Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy
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    A Decline in the Domestic Real Interest Rate Would Cause
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A Decline in the Domestic Real Interest Rate Would Cause

Question 86

Question 86

Multiple Choice

A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.


A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall

Correct Answer:

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