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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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    An Increase in the Foreign Real Interest Rate Would Cause
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An Increase in the Foreign Real Interest Rate Would Cause

Question 4

Question 4

Multiple Choice

An increase in the foreign real interest rate would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________.


A) rise; shift up
B) rise; shift down
C) fall; shift up
D) fall; shift down

Correct Answer:

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