In 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

Quizplus · Accepted Answer

The Answer of In 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 a Small Open Economy, When Foreign Governments Reduce National