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Including the Interest Rate Gap, the Net Export Function Becomes

Question 67

Multiple Choice

Including the interest rate gap, the net export function becomes:


A) NXtYˉt=aˉnxbˉnx(Rtrˉ) +bˉnx(Rˉwrˉ) \frac { N X _ { t } } { \bar { Y } _ { t } } = \bar { a } _ { n x } - \bar { b } _ { n x } \left( R _ { t } - \bar { r } \right) + \bar { b } _ { n x } \left( \bar { R } ^ { w } - \bar { r } \right)

B) NXtYˉt=aˉnxbˉnx(RtRw) \frac { N X _ { t } } { \bar { Y } _ { t } } = \bar { a } _ { n x } - \bar { b } _ { n x } \left( R _ { t } - R ^ { w } \right)

C) NXtYˉt=aˉnx+bˉnx(Rˉwrˉ) \frac { N X _ { t } } { \bar { Y } _ { t } } = \bar { a } _ { n x } + \bar { b } _ { n x } \left( \bar { R } ^ { w } - \bar { r } \right)

D) NXYˉ=aˉnx\frac { N X } { \bar { Y } } = \bar { a } _ { n x '} because Rt=RˉwR _ { t } = \bar { R } ^ { w }

E) NXtYˉt=aˉnx+bˉnx(Rt+Rˉw) \frac { N X _ { t } } { \bar { Y } _ { t } } = \bar { a } _ { n x } + \bar { b } _ { n x } \left( R _ { t } + \bar { R } ^ { w } \right)

Correct Answer:

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