Which of the following events will tend to increase net exports of the United States?

Question

Quizplus · Accepted Answer

None of the events listed will tend to increase net exports. An appreciation of the dollar makes exports more expensive for foreign buyers, reducing net exports. An increase in the U.S. real interest rate can lead to an appreciation of the dollar and reduce demand for U.S. exports. A fall in the real interest rate in several western European countries may lead to a depreciation of their currencies, making U.S. exports relatively more expensive and reducing net exports. Therefore, none of the options will increase net exports.

Which of the Following Events Will Tend to Increase Net