Everything else equal, an appreciation of the dollar will: A) ...

[nummyann]

Everything else equal, an appreciation of the dollar will:
 
  A) cause the net exports of the U.S. to increase. B) cause the U.S. GDP to fall.
  C) not affect U.S. GDP. D) cause the U.S. GDP to increase.

Question 2

A business borrows from a bank at 7 percent but expects 3 percent general inflation in the economy. What are the nominal and real rates of interest facing this borrower?
 
  What will be an ideal response?

[reversalruiz]

Answer to Question 1

B

Answer to Question 2

The borrower's nominal interest rate is 7 percent and the real interest rate is 4 percent.

[nummyann]

Excellent

[Mochi]

Gracias!