If U.S.real interest rates fall,international repercussions put _________________ pressure on the price level and __________________ pressure on Real GDP in the United States.

Question

Quizplus · Accepted Answer

When U.S. real interest rates fall, it typically leads to a depreciation of the U.S. dollar, making U.S. goods cheaper for foreign buyers and increasing exports. This puts upward pressure on the price level due to increased demand and upward pressure on Real GDP due to higher net exports.

If USreal Interest Rates Fall,international Repercussions Put _________________ Pressure on the the Price