If the rate of inflation overseas falls relative to the rate of inflation in the United States, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____

a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall


d

Economics

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The price elasticity of demand is defined as

a. the absolute change in price divided by the absolute change in quantity demanded. b. the absolute change in quantity demanded divided by the absolute change in price. c. the percentage change in quantity demanded divided by the percentage change in price. d. the percentage change in price divided by the percentage change in quantity demanded.

Economics

Suppose a drop in prices in the stock market makes people feel less financially secure. This would cause __________ the economy's AD curve

A) movement down along B) movement up along C) a rightward shift of D) a leftward shift of

Economics

New classical economists build their theories upon

A) adaptive expectations. B) inflexible wages and prices. C) rational expectations. D) the assumption that it takes a long time for markets to achieve equilibrium values.

Economics

The expansion of world output as a result of trade is mainly due to the effects of

A. Specialization according to comparative advantage. B. Improved terms of trade. C. Specialization according to absolute advantage. D. Higher trade barriers.

Economics