If U.S. prices increase relative to the rest of the world, we would expect imports:
A. to increase and exports to fall.
B. to decrease and exports to increase.
C. as well as exports to increase.
D. as well as exports to decrease.
A. to increase and exports to fall.
You might also like to view...
A local bar provides free pretzels and peanuts and cheap drinks on a Monday night. But soon a fight breaks out in the parking lot between two quarreling patrons. Neighboring homeowners awaken as a result, and call the police
What can we clearly conclude? A) The bar's free pretzels and peanuts generate a positive externality. B) Each fighter imposes a negative externality on the other fighter. C) The fighters impose a negative externality on the neighboring homeowners. D) The neighboring homeowners impose a negative externality on the police. E) All of the above are true.
What is the principle monetary policy tool used by the Fed. Why?
What will be an ideal response?
Jim recently graduated from college. His income increased dramatically;from$5000 a year to $60,000 a year. Jim decides that instead of using the bus, he would buy a car. This implies that
a. The car is a normal goods for Jim b. The car is an inferior goods for Jim c. The bus and the car are complementary for Jim d. Need information on the price of cars
Are credit cards money? Explain.
What will be an ideal response?