The Country of Lexburgh Is Politically Very Stable and Has

question 109

Multiple Choice

The country of Lexburgh is politically very stable and has a long tradition of respecting property rights.If several other countries suddenly became politically unstable,which statement would happen?

• A) Lexburgh's real interest rate would rise.
• B) Lexburgh's real exchange rate would fall.
• C) Lexburgh's net exports would fall.
• D) Lexburgh's net exports would not change.