NAIMMCQ FIN 201 In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.

In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to and should cause desired saving minus desired investment to .

FIN 201

In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to and should cause desired saving minus desired investment to .

a. fall; fall
b. fall; rise
c. rise; fall
d. rise; rise

Answer: A

NAIMMCQ

In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.

In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.

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In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to and should cause desired saving minus desired investment to .

In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to and should cause desired saving minus desired investment to .