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
A
You might also like to view...
The current account balance is equal to
A) exports - imports - net interest + net transfers. B) exports - imports + net interest + net transfers. C) imports - exports + net interest - net transfers. D) exports - imports - net interest - net transfers. E) imports - exports + net interest + net transfers.
When a large, well-known corporation wishes to borrow directly from the public, it can
a. sell bonds. b. sell shares of stock. c. go to a bank for a loan. d. All of the above are correct.
Higher interest rates cause investment spending to fall and pull down aggregate demand via the multiplier mechanism.
Answer the following statement true (T) or false (F)
Use the above figure. The profit-maximizing output and price is
A. 600 and $16, respectively. B. 600 and $10, respectively. C. 800 and $10, respectively. D. 600 and $8, respectively.