The interest sensitivity of exports is equal to
A) the sensitivity of exports to changes in the exchange rate plus the sensitivity of the exchange rate to changes in the interest rate.
B) the sensitivity of exports to changes in the exchange rate times the sensitivity of the exchange rate to changes in the interest rate.
C) the sensitivity of exports to changes in the exchange rate minus the sensitivity of the exchange rate to changes in the interest rate.
D) the sensitivity of exports to changes in the exchange rate divided by the sensitivity of the exchange rate to changes in the interest rate.
Correct Answer:
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Q20: In general, the higher is the stock
Q21: The level of exports is affected by
Q22: An increase in the domestic real interest
Q23: A decrease in the domestic real interest
Q24: The slope of the autonomous spending line
Q26: The IS curve tells us
A) what equilibrium
Q27: The intercept of the IS curve tells
Q28: The slope of the IS curve tells
Q29: The slope of the IS curve depends
Q30: The baseline autonomous spending is that part
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