An increase in the foreign real interest rate would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________.
A. rise; shift up
B. rise; shift down
C. fall; shift up
D. fall; shift down
Answer: A
You might also like to view...
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.Turning PointDateReal GDP(1996 $ billions) (A)Feb. 19612352.9(B)Dec. 19693571.4(C)Nov. 19703566.5(D)Nov. 19734151.1(E)Mar. 19754010.0Which of the following periods was an expansion?
A. November 1970 through November 1973 B. December 1969 through November 1973 C. November 1970 through March 1975 D. December 1969 through November 1970
In the above figure, if the price of milk rises, the budget line
A) rotates outward and the slope becomes steeper. B) shifts inward and its slope does not change. C) rotates inward and the slope becomes steeper. D) rotates inward and the slope becomes more shallow.
Labor unions create a rent when they succeed. This rent forces employers or management to return some of their profits to unionized workers in the form of improved working conditions, health benefits or increased wages
Indicate whether the statement is true or false
Goods and services purchased from international sources are
A. Net imports. B. Imports. C. Exports. D. Net exports.