Why does a change in the foreign real interest rate lead to a shift of the AD

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Why does a change in the foreign real interest rate lead to a shift of the AD curve?

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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Question Posted: Feb 25, 2016 06:39 AM

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Why does a change in the foreign real interest rate lead to a shift of the AD

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A rise in the foreign real rate makes the home country real rate relatively low...View the full answer

Macroeconomics

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