A Decrease in the Foreign Real Interest Rate Would Cause

question 23

Multiple Choice

A decrease in the foreign real interest rate would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________.

• A)rise; shift up
• B)rise; shift down
• C)fall; shift up
• D)fall; shift down

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Definitions:

Accurate

Without inaccuracies or flaws; exact.

Repeating Decimal

A decimal fraction in which a sequence of digits repeats indefinitely.

Decimal Notation

A method of writing numbers that uses a decimal point to separate the whole number from fractions of a whole.

Percent Equivalent

The decimal or fractional representation of a percent, illustrating the proportion of a whole.