Why do increases in the real interest rate lead to decreases in net exports, and vice versa?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0133836790

11th edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 03, 2017 04:05 AM

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Why do increases in the real interest rate lead to decreases in net exports, and vice versa?

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When the real interest rate increases this increases the demand for do...View the full answer

The Economics of Money Banking and Financial Markets

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