If prices increase only in the United States, then:
A. U.S. goods become relatively more expensive than goods from other countries.
B. U.S. goods become relatively less expensive than goods from other countries.
C. the prices of foreign goods must rise.
D. the income level of people in the US must rise.
A. U.S. goods become relatively more expensive than goods from other countries.
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If an investor holds two risky assets with a perfect negative correlation, then risk
A) falls to zero. B) is increased. C) is unaffected. D) is reduced by 50 percent.
Suppose you purchase a new home for $250,000, making a down payment of 25% and taking out a mortgage on the balance. What is the return on your investment in your home if one year later the price of your home increases by 30%?
A) 27.5% B) 41.7% C) 83.3% D) 120%
You currently subscribe to two magazines and are trying to decide whether you should subscribe to a third. What should determine your decision, if you are rational?
a. the total cost of the magazines compared to the total satisfaction you would receive b. the total amount of satisfaction you would get from the magazines c. the enjoyment you would get from the third magazine d. the cost of the third magazine, including the time it takes to read it e. the cost of the third magazine compared to the additional enjoyment you would get from it
Which of the following four elements contribute to GDP in the expenditure approach?
a. Consumption spending, private investment, government purchases, net exports b. Consumption spending, business investment, government purchases, imports c. Consumption of services, private investment, government consumption, exports d. Consumption of goods, private investment, government investment, government consumption e. Consumption of durable goods, private investment, government purchases, net exports