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A Decrease in the Real Interest Rate in the U

Question 1

Multiple Choice

A decrease in the real interest rate in the U.S. will cause net exports to:


A) increase because exports will remain constant but imports will decrease.
B) decrease because exports will decrease and imports will increase.
C) decrease because exports will increase but imports will increase.
D) increase because exports will increase and imports will decrease.

Correct Answer:

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