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Author Question: What will be the effects of an increase in real output on the interest rate? What will be an ... (Read 58 times)

altibaby

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on: Jun 30, 2018
What will be the effects of an increase in real output on the interest rate?
 
  What will be an ideal response?

Question 2

As of 2008, with which of the following countries did the U.S. not have a preferential trade agreement?
 
  A) Mexico.
  B) Canada.
  C) Russia.
  D) Israel.


emsimon14

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Reply #1 on: Jun 30, 2018
Answer to Question 1

An increase in real output will increase the interest rate. If investment depends only on interest rate, this will cause investment to go down. The increases interest rate will cause an appreciation of the dollar.

Answer to Question 2

C


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