In a small open economy, if the world interest rate falls, then domestic investment will _____ and the real exchange rate will _____, holding all else constant.
A) decrease; decrease
B) decrease; increase
C) increase; decrease
D) increase; increase
Correct Answer:
Verified
Q48: The nominal exchange rate between the U.S.
Q49: If the real exchange rate depreciates from
Q50: When the real exchange rate rises:
A) exports
Q51: The lower the real exchange rate is,
Q52: In a small open economy with perfect
Q54: The real exchange rate:
A) measures how many
Q55: A shrinking U.S. budget deficit in the
Q56: If the real exchange rate is high,
Q57: In an open economy:
A) a trade deficit
Q58: If the number of dollars per yen
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