How and why do changes in the real interest rate affect net exports?

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 20, 2024 04:00 AM

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How and why do changes in the real interest rate affect net exports?

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Changes in the real interest rate can influence net exports through various channels primarily by affecting the exchange rate and subsequently the dem...View the full answer

Macroeconomics Policy And Practice

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