Describe the effects of a rise in the domestic real interest rate on the exchange rate and on both domestic and foreign net exports
What will be an ideal response?
The rise in the domestic real interest rate leads to a rise in the demand for domestic assets, raising the exchange rate. The rise in the exchange rate reduces domestic net exports and raises foreign net exports.
Economics
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__________: Is a loss in value within a structure due to changes in tastes, preferences, technical innovations, or market standards.
Fill in the blank(s) with the appropriate word(s).
Economics
If an increase in the monetary base of $8 billion increases the quantity of money by $64 billion, then the money multiplier is equal to ________
A) $64 billion B) 8 C) $8 billion D) 1/8
Economics