More optimistic about the profitability of investment

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Now suppose that US businesses become more optimistic about the profitability of investment, so that the demand for loanable funds shifts to the right. 1. What is the effect on the U.S. real exchange rate (appreciate, depreciate, no change)? 2. What is the effect on U.S. net exports (increase, decrease, no change)? Show graph.

Reference no: EM131099144

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More optimistic about the profitability of investment : Now suppose that US businesses become more optimistic about the profitability of investment, so that the demand for loanable funds shifts to the right. What is the effect on the U.S. real exchange rate (appreciate, depreciate, no change)?

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