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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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    In an Open Economy,an Increase in Foreign Output Would Cause
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In an Open Economy,an Increase in Foreign Output Would Cause

Question 101

Question 101

Multiple Choice

In an open economy,an increase in foreign output would cause the IS curve to shift ________ and a decrease in the foreign real interest rate would cause the IS curve to shift ________.


A) down; down
B) down; up
C) up; down
D) up; up

Correct Answer:

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