The Japanese real interest rate declines relative to the German real interest rate. German net exports ________ and the German exchange rate ________.
a. decrease; falls
b. increase; falls
c. decrease; rises
d. increase; rises
Answer: C
The Japanese real interest rate declines relative to the German real interest rate. German net exports ________ and the German exchange rate ________.
a. decrease; falls
b. increase; falls
c. decrease; rises
d. increase; rises
Answer: C