Other things the same, a higher real exchange rate raises net exports

The median voter model implies that

A) people in the political middle will be dissatisfied with the amount of spending on government funded projects. B) spending on government funded projects reflects the preferences of only those far away from the median. C) many people will be satisfied with the amount of spending on government funded projects. D) many people will be dissatisfied with the amount of spending on government funded projects.

As the nominal interest rate increases ________

A) it becomes more costly to hold money instead of bonds B) the quantity of money demanded falls C) the opportunity cost of holding money rises D) all of the above E) none of the above