In the basic model of a small open economy,when foreign governments reduce national saving in their countries,the equilibrium real exchange rate:
A) rises and net exports fall.
B) rises and net exports rise.
C) falls and net exports fall.
D) falls and net exports rise.

Question

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The Answer of In the basic model of a small open economy,when foreign governments reduce national saving in their countries,the equilibrium real exchange rate:
A) rises and net exports fall.
B) rises and net exports rise.
C) falls and net exports fall.
D) falls and net exports rise.

In the Basic Model of a Small Open Economy,when Foreign