The international trade effect states that
A) an increase in the price level will raise exports.
B) an increase in the price level will lower net exports.
C) an increase in the price level will raise net exports.
D) an increase in the price level will lower imports.
B
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In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of
A) a decrease in the real interest rate. B) a decrease in the buying power of money. C) an increased expectation of a recession that lowers the expected rate of profit from investment. D) a decrease in the foreign exchange rate. E) an increase in the price level.
The relation between the nominal and real exchange rates is given by which of the following equations?
A) EX = ( × P)/ B) = (EX × P)/ C) EX = ( × )/P D) = (EX × )/P
Refer to the above figure. Which of the following would allow society to move to point d?
A) producing efficiently B) concentrating production in wheat C) increasing the quantity of labor D) using the best land to produce wheat and the lower quality land to produce beans
Suppose a firm is in a range of production where it is experiencing economies of scale. Knowing this, we can predict that:
A. the long-run average total cost curve is upsloping. B. a 10 percent increase in all inputs will increase output by less than 10 percent. C. a 10 percent increase in all inputs will increase output by more than 10 percent. D. the firm is encountering problems of managerial bureaucracy because of its size.