Homework answers / question archive / 1)If a country makes political reforms so that people now believe this country’s assets are less risky, what happens to its interest rate, its exchange rate, and its net exports? 2)If people in the U

1)If a country makes political reforms so that people now believe this country’s assets are less risky, what happens to its interest rate, its exchange rate, and its net exports? 2)If people in the U

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1)If a country makes political reforms so that people now believe this country’s assets are less risky, what happens to its interest rate, its exchange rate, and its net exports?

2)If people in the U.S. choose to save a smaller percentage of income, what will happen to the interest rate, net capital outflow, the exchange rate, and net exports?