A decline in the domestic real interest rate would cause a in net exports and a in the exchange rate.

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A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

asked Jul 2, 2021 155k views

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Brynjar · Answer 1 · 2021-07-07T20:13:53+0000

Answer: fall; rise

Step-by-step explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

A decline in the domestic real interest rate would cause a in net exports and a in the exchange rate.

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