If the Real Interest Rate Rises Relative to Foreign Rates

question 62

Multiple Choice

If the real interest rate rises relative to foreign rates, then

• A)appreciation of the dollar is likely.
• B)capital inflows could increase.
• C)net exports could fall.
• D)All of the above are correct.

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Definitions:

Box Plot

A graphical representation of a dataset that shows the distribution's minimum, first quartile, median, third quartile, and maximum.

Interquartile Range

The difference between the 75th and 25th percentiles of a data set, representing the spread of the middle 50% of the values.

Observations

Recorded data or measurements that are collected from studies or experiments.

Quartiles

Values that divide a dataset into four equal parts, helping in assessing the spread and the central tendency of the data.