Political instability in the U.S. Select one: A. decreases the real interest rate and appreciates the real exchange rate. B. decreases the real interest rate and depreciates the real exchange rate. C. increases the real interest rate and appreciates the real exchange rate. D. increases the real interest rate and depreciates the real exchange rate.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter18: Trading With Other Nations
Section18.2: Financing World Trade
Problem 4R
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Political instability in the U.S. Select one: A. decreases the real interest rate and appreciates the real exchange rate. B. decreases the real interest rate and depreciates the real exchange rate. C. increases the real interest rate and appreciates the real exchange rate. D. increases the real interest rate and depreciates the real exchange rate.
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