When interest rates fall in the United States (with the price level fixed),the value of the dollar ________,domestic goods become ________ expensive,and net exports ________.
A)falls;less;fall
B)falls;less;rise
C)falls;more;fall
D)rises;less;fall

Question

Quizplus · Accepted Answer

When interest rates fall in the United States, the value of the dollar falls as well. This means that domestic goods become less expensive, making them more attractive to foreign buyers. As a result, net exports will rise.

When Interest Rates Fall in the United States (With the Price