Can a change in the Japanese price level cause the United States to move downward along its J-curve?
A) Yes, if the Japanese price level falls and the United States does not buy more Japanese goods.
B) Yes, if the Japanese price level falls and the United States buys more Japanese goods.
C) Yes, if the Japanese price level rises and the United States does not buy significantly fewer Japanese goods.
D) No, a change in relative price levels cannot initiate the J-curve phenomenon.
C
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A. one firm. B. two firms. C. many firms that sell slightly differentiated products. D. many firms that sell identical products.
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A. a higher real GDP. B. a lower real GDP. C. higher income levels. D. a lower nominal GDP.
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A) the price level falls. B) the nominal interest rate rises. C) real GDP increases. D) All of the above answers are correct.