In an Open Economy,a Decrease in Net Exports Because of Reduced

question 96

Multiple Choice

In an open economy,a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.

• A)rise; rise
• B)rise; fall
• C)fall; rise
• D)fall; fall

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Definitions:

Winners

Individuals or groups who achieve first place or victory in a competition, contest, or challenge.

Conservative Candidate

A political candidate who aligns with conservative principles, advocating for tradition and hesitant towards change.

Liberal Candidate

A political candidate who supports progressive policies and favors reforms in the social, political, and economic spheres.

Events

Occurrences or outcomes of particular importance, often studied in the context of probability and statistics.