Increases in the Real Interest Rate Will Result in A(n)

Increases in the real interest rate will result in a(n) :

A) increase in net exports because it will lead to a depreciation of the dollar.
B) decrease in net exports because it will lead to a depreciation of the dollar.
C) increase in net exports because it will lead to an appreciation of the dollar.
D) decrease in net exports because it will lead to an appreciation of the dollar.

Correct Answer:

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