if the fed raises interest rates in an effort to prevent inflation, all else being equal,...

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if the fed raises interest rates in an effort to prevent inflation, all else being equal,...

if the fed raises interest rates in an effort to prevent inflation, all else being equal, U.S. net exports should rise. true or false?

business economics

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Answer 1

Answer #1

Ans: False

Explanation:

When Fed raise interest rate, increases the value of exchange rate. This leads to lower exports and more imports. So, net exports will fall.

Thus, the statement is false.

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Answer 2

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