unterholznersofia unterholznersofia

17-05-2022
Advanced Placement (AP)

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What is the relationship between real interest rates and net exports?

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romanfiore123 romanfiore123

17-05-2022

Answer:

When interest rates are cut, there is an increase both in spending on durables and net exports. Both channels lead to higher aggregate spending and thus higher output.

Explanation:

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