Why do changes in the real interest rate affect net exports


Problem

1. How and why do changes in the real interest rate affect planned investment spending?

2. How and why do changes in the real interest rate affect net exports?

3. What condition is required for equilibrium in the goods market?

4. What happens to aggregate output if unplanned inventory investment is either positive or negative?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why do changes in the real interest rate affect net exports
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