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A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

User Bluantinoo
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Answer: fall; rise

Step-by-step explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

User Brynjar
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