Which of the following is true when the foreign real interest rate decreases,assuming everything else remains constant?
A)The exchange rate rises and net exports declines.
B)The exchange rate rises and net exports increases.
C)The exchange rate falls and net exports declines.
D)The exchange rate falls and net exports increases.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is true when the foreign real interest rate decreases,assuming everything else remains constant?
A)The exchange rate rises and net exports declines.
B)The exchange rate rises and net exports increases.
C)The exchange rate falls and net exports declines.
D)The exchange rate falls and net exports increases.

Which of the Following Is True When the Foreign Real