Multiple Choice
In an open economy,an increase in net exports because of increased demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
Correct Answer:

Verified
Correct Answer:
Verified
Q50: The currency created by the European Monetary
Q51: If the fundamental value of the exchange
Q52: A decrease in foreign output would cause
Q53: International businesses like a fixed exchange-rate system
Q54: An improvement in the quality of U.S.goods
Q56: When the dollar rises relative to other
Q57: When the nominal exchange rate in terms
Q58: What happens in the short run in
Q59: A temporary decrease in government purchases would
Q60: Currency unions are rare because<br>A)they're to no