Assume that a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. Then, the U.S. real interest rate:
A) and net exports will both fall.
B) will fall and net exports will rise.
C) will rise and net exports will fall.
D) and net exports will both rise.
Correct Answer:
Verified
Q98: The idea that the amount of any
Q99: A statement that is generally true about
Q100: The law of one price is enforced
Q101: In a small open economy, if consumers
Q102: If the nominal interest rates in the
Q104: Suppose that the International Monetary Fund (IMF)
Q105: In a large open economy, if political
Q106: a. If corporate downsizing and lack of
Q107: The government of a small open economy
Q108: a. In September 1995, Patrick Buchanan, a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents