Assume that U.S. products did decline in relative quality during the 1980s.   a. Please indicate the effect of this shift in net exports on the U.S. market for foreign exchange. (use the image attached)   b. According to this model, which of the following statements are true as a result of the quality change? Check all that apply.               - There is no change in the real interest rate.               - The trade balance decreases               - Net capital outflow decreases.                -The real exchange rate declines.   c.  The claim that some people made in the popular press is? isn't? consistent with the model in this chapter.

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