An increase in the price level reduces net exports because
A) it leads indirectly to a higher exchange rate.
B) it leads indirectly to a lower exchange rate.
C) it leads indirectly to a lower real interest rate.
D) it leads directly to higher real money balances.
A
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Discuss the benefits of unions
What will be an ideal response?
If Tom tattles, what would Sarah's best response be
a. Hit b. Not hit c. Run d. Hide
A person has a comparative advantage if
a. she can produce everything more cheaply than her co-worker can b. she can produce everything at a faster rate than her co-worker can c. she can produce a good with a smaller opportunity cost than her co-worker can d. she sees through corporate and government manipulation e. she gets rich through inheritance
In the above figure, if the economy is at equilibrium at E1, the Fed would most likely
A. attempt to lower the aggregate demand in the economy. B. adopt an expansionary monetary policy. C. adopt a contractionary monetary policy. D. attempt to lower the price level below 120.