Suppose the real interest rate falls in the absence of other economic changes. What would you expect to happen to (a) consumption, (b) investment, and (c) net exports in the economy? a. Consumption will fall as consumers opt to save more. rise as borrowing to purchase consumer durables becomes more costly. rise as borrowing to purchase consumer durables becomes less costly. fall as borrowing to purchase consumer durables becomes less costly. b. Investment will rise as fewer projects will be profitable at the lower interest rate level. fall as more projects will be profitable at the lower interest rate level. fall as fewer projects will be profitable at the lower interest rate level. rise as more projects will be profitable at the lower interest rate level. c. Net exports will will fall as a rise in foreign investor demand for U.S. assets will lead to a depreciation of the dollar, making U.S. exports less competitive. will fall as a fall in foreign investor demand for U.S. assets will lead to a depreciation of the dollar, making U.S. exports less competitive. rise as a fall in foreign investor demand for U.S. assets will lead to an appreciation of the dollar, making U.S. exports more competitive. rise as a fall in foreign investor demand for U.S. assets will lead to a depreciation of the dollar, making U.S. exports more competitive. Suppose the real interest rate falls in the absence of other economic changes. What would you expect to happen to (a) consumption, (b) investment, and (c) net exports in the economy? a. Consumption will fall as consumers opt to save more. rise as borrowing to purchase consumer durables becomes more costly. rise as borrowing to purchase consumer durables becomes less costly. fall as borrowing to purchase consumer durables becomes less costly. b. Investment will rise as fewer projects will be profitable at the lower interest rate level. fall as more projects will be profitable at the lower interest rate level. fall as fewer projects will be profitable at the lower interest rate level. rise as more projects will be profitable at the lower interest rate level. c. Net exports will will fall as a rise in foreign investor demand for U.S. assets will lead to a depreciation of the dollar, making U.S. exports less competitive. will fall as a fall in foreign investor demand for U.S. assets will lead to a depreciation of the dollar, making U.S. exports less competitive. rise as a fall in foreign investor demand for U.S. assets will lead to an appreciation of the dollar, making U.S. exports more competitive. rise as a fall in foreign investor demand for U.S. assets will lead to a depreciation of the dollar, making U.S. exports more competitive