Some of the variables on which net exports depend are
A) the domestic real interest rate, foreign real GDP, and domestic real GDP.
B) the real exchange rate, foreign real interest rates, and domestic real GDP.
C) the real exchange rate, foreign real GDP, and domestic real GDP.
D) all of the above.

Question

Quizplus · Accepted Answer

Net exports depend on a variety of factors including the domestic real interest rate, foreign real GDP, domestic real GDP, the real exchange rate, and foreign real interest rates. Each of these factors influences the demand for domestic versus foreign goods, thereby affecting net exports.

Some of the Variables on Which Net Exports Depend Are