What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?
(a) The foreign real interest rate falls.
(b) Foreign output rises.
(c) Foreign demand for domestic goods rises.
(d) Domestic output rises.
(e) The domestic real interest rate falls.
(a) Exchange rate rises, net exports fall.
(b) Exchange rate rises, net exports rise.
(c) Exchange rate rises, net exports rise.
(d) Exchange rate falls, net exports fall.
(e) Exchange rate falls, net exports rise.
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Which of the following activities create a negative externality?
A) cleaning up the sidewalk on your block B) graduating from college C) keeping a junked car parked on your front lawn D) repainting the house you live in to improve its appearance
According to your text, what is the major long-run issue facing the European Union?
What will be an ideal response?