If the price of new automobiles rises in the U.S. market while prices remain unchanged in foreign markets,
a. foreign firms will want to export fewer automobiles to the United States
b. foreign firms will want to export more automobiles to the United States
c. foreign firms will not change their exports to the United States since it is a different market
d. U.S. firms will want to export more automobiles to foreign markets
e. U.S. firms will not change their exports to foreign markets unless foreign prices also change
B
You might also like to view...
People will continue to use a common property until the marginal cost of using it equals
a. zero. b. the social marginal benefit from using it. c. the admission fee that a competitive firm would charge for its use. d. the value they receive, on average, from using it.
For many years, U.S. investment has exceeded savings and government expenditure has exceeded taxes
These imbalances (deficits) have been financed through international ________ by the United States as shown by the surplus on the balance of payments ________ account. A) lending; current B) borrowing; capital and financial C) borrowing; official settlements D) lending; official settlements E) borrowing; current
Within the Keynesian aggregate expenditures model, which of the following autonomous changes would decrease the equilibrium output?
a. A decrease in investment spending. b. An increase in net exports. c. An increase in government spending. d. An increase in consumption expenditures
According to Friedman and Phelps, which of the following statements is a correct characterization of unemployment and inflation in the United States since the 1950s?
A. The relationship between inflation and unemployment is very different from the Phillips curve. A positive relationship is evident rather than an inverse relationship. B. A trade-off between inflation and unemployment as pictured in the Phillips curve existed in the 1970s and 1980s, but not over the entire period. C. There is no clear relationship between unemployment and inflation. D. A trade-off between inflation and unemployment as pictured in the Phillips curve existed over the entire time period.