If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in the United States?
A. An increase in U.S. imports
B. An increase in U.S. exports
C. A decrease in U.S. imports
D. An increase in U.S. net exports
Answer: A
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An important foundation of the new growth theory is that
A) we will get more technological advances when the rewards for producing them are greater. B) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. C) we will get more technological advances the more the government is involved. D) improvements in labor productivity are poor measures of technological growth.
Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run
a. True b. False Indicate whether the statement is true or false
A table that shows the relationship between the price of a good and the quantity demanded of that good is called a
a. price-quantity schedule. b. buyer schedule. c. demand schedule. d. demand curve.
You put money into an account that earns an 8 percent nominal interest rate. The inflation rate is 5 percent, and your marginal tax rate is 10 percent. What is your after-tax real rate of interest?
a. 2.2 percent b. 2.7 percent c. 11.7 percent d. 7.7 percent