Increases in the Real Interest Rate in the U

question 35

Multiple Choice

Increases in the real interest rate in the U.S. will cause net exports to:

• A) decrease, because the dollar depreciates.
• B) increase, because the dollar depreciates.
• C) decrease, because the dollar appreciates.
• D) increase, because the dollar appreciates.

---

Definitions:

Decibel

A unit of measurement used to express the intensity of sound, with each ten-decibel increase representing a tenfold increase in sound intensity.

Snail-Shaped Tube

Refers to the cochlea in the inner ear, which plays a key role in the process of hearing by converting sound waves into neural signals.

Vestibular Sacs

Part of the inner ear involved in balance, specifically in detecting changes in the position of the head with respect to gravity.

Semicircular Canals

Structures within the inner ear that are key components of the vestibular system, helping to maintain balance by responding to rotational movements.