Explain the reason why the next export falls as the interest rate rises. In your explanation, you need to clearly show the sequence of events that take place after the interest rate rises and leads to a decline in the next export.   * please use the terms Net Exports (N), Invesment (I), and Investment rate.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter11: Gross Domestic Product
Section: Chapter Questions
Problem 7SQP
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Explain the reason why the next export falls as the interest rate rises. In your explanation, you need to clearly show the sequence of events that take place after the interest rate rises and leads to a decline in the next export.  

* please use the terms Net Exports (N), Invesment (I), and Investment rate. 

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