Ceteris paribus, a rise in U.S. interest rates will cause exports to increase.

Name: Ceteris paribus, a rise in U.S. interest rates will cause exports to increase.
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Question

Quizplus · Accepted Answer

A rise in U.S. interest rates will lead to a stronger U.S. dollar, making U.S. exports more expensive for foreign buyers and ultimately decreasing demand for U.S. exports. Therefore, exports are not likely to increase when U.S. interest rates rise, but rather might decrease.

Ceteris Paribus, a Rise in U