A rise in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.
a. fall; fall
b. rise; fall
c. fall; rise
d. rise; rise
Answer: C
A rise in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.
a. fall; fall
b. rise; fall
c. fall; rise
d. rise; rise
Answer: C