If the government of Venezuela made policy changes that increased national saving,the real exchange rate of the peso would
A)depreciate and Venezuelan net exports would rise.
B)depreciate and Venezuelan net exports would fall.
C)appreciate and Venezuelan net exports would rise.
D)appreciate and Venezuelan net exports would fall.

Question

Quizplus · Accepted Answer

An increase in national saving would lead to a lower interest rate, causing the real exchange rate to depreciate, making Venezuelan goods cheaper for foreigners, thus increasing net exports.

If the Government of Venezuela Made Policy Changes That Increased