Net exports will ________ if _________ increase(s).
A) increase; domestic real interest rates
B) increase; domestic real GDP
C) decrease; foreign real GDP
D) increase; foreign real interest rates

Question

Quizplus · Accepted Answer

Net exports will increase if foreign real interest rates increase, as this can lead to a depreciation of the domestic currency, making domestic goods cheaper for foreign buyers and thus increasing exports.

Net Exports Will ________ If _________ Increase(s)

Net Exports Will If _ Increase(s)