mradcrito9021 mradcrito9021
  • 06-08-2020
  • Business
contestada

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

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topeadeniran2 topeadeniran2
  • 07-08-2020

Answer: fall; rise

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.

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