According to this model, which of the following statements are true as a result of the quality change? Check all that apply.
O The real exchange rate declines.
O Net capital outflow decreases.
O The trade balance decreases.
O There is no change in the real interest rate.
True or False: The claim that some people made in the popular press is consistent with the model in this chapter.
True
False
True or False: The change in the real exchange rate that resulted from the decline in the quality of U.S. products may decrease our standard of living.
True
False