4 Question 4In an open economy, exports will decrease when there isA) an increase in the real exchange rate.an increase in foreign output.(c) an increase in domestic output.a decrease in domestic output.

When goods produced in one country and purchase by other country, then it is known as export.

Answered: In an open economy, exports will…

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In an open economy, exports will decrease when there is an increase in the real exchange rate.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter32: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 3QCMC

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