Major improvements in computer information technology and communications in the late 1990s fueled an increase in investment demand in the United States. What is the predicted impact of this increased investment demand in the U.S., which is a large, open economy, on the U.S. interest rate, the U.S. exchange rate, and U.S. net exports, holding other factors constant? Illustrate your Answer graphically and explain in words.

Question

Quizplus · Accepted Answer

The Answer of Major improvements in computer information technology and communications in the late 1990s fueled an increase in investment demand in the United States. What is the predicted impact of this increased investment demand in the U.S., which is a large, open economy, on the U.S. interest rate, the U.S. exchange rate, and U.S. net exports, holding other factors constant? Illustrate your Answer graphically and explain in words.

Major Improvements in Computer Information Technology and Communications in the Late