Net exports are
A) positively correlated with both interest rates and GDP.
B) positively correlated with interest rates but fairly independent of GDP.
C) positively correlated with GDP but fairly independent of interest rates.
D) negatively correlated with GDP but positively correlated with interest rates.
E) negatively correlated with both interest rates and GDP.

Question

Quizplus · Accepted Answer

Net exports are negatively correlated with both interest rates and GDP because higher interest rates can lead to a stronger currency, making exports more expensive, and higher GDP often increases imports.

Net Exports Are