The international trade effect explains that higher prices make domestic goods
a. more expensive, causing imports to rise and exports to fall
b. more expensive, causing imports and exports to fall
c. more expensive, causing imports to fall and exports to rise
d. less expensive, causing imports and exports to fall
e. less expensive, causing imports to fall and exports to rise
A
You might also like to view...
Everything else held constant, a decrease in the required reserve ratio on checkable deposits causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
Which of the following is counted as "capital" in economics?
A) the money people have B) the wealth people have C) the machines workers have to work with D) the labor force
Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice Per Unit18$22103315441855206In determining real GDP for year 1:
A. the price index number in year 1 is 95. B. the price index number in year 1 will be greater than 100. C. nominal GDP in years 1 and 2 should be deflated. D. nominal GDP in year 1 should be inflated.
If the Fed sells government securities, then there is
A. an increase in the supply of money. B. an increase in the required reserve ratio. C. a decrease in the discount rate. D. a decrease in the supply of money.