Everything else being equal,an appreciation of the real exchange rate ________ net exports and ________ GDP.

Name: Everything else being equal,an appreciation of the real exchange rate ________ net exports and ________ GDP.
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An appreciation of the real exchange rate makes a country's goods more expensive to foreigners, decreasing exports and increasing imports, which leads to a decrease in net exports. This decrease in net exports reduces aggregate demand, which can lead to a decrease in GDP.

Everything Else Being Equal,an Appreciation of the Real Exchange Rate