If the world price of a product rises relative to the domestic price in a trading nation, then for that product
A. exports will increase or imports will decrease.
B. exports and imports will decrease.
C. imports will increase or exports will decrease.
D. exports and imports will increase.
Answer: A
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On the eve of the Civil War, __________ power was more important than _____________ power, but by the end of the 19th century, 90 percent of manufacturing energy came from _________
a. animal; water; steam b. steam; water; electricity c. wind; water; petroleum d. water; steam; coal
A cost shock, such as a natural disaster, leads to stagflation.
Answer the following statement true (T) or false (F)
According to the liquidity preference model, if the interest rate rises above its equilibrium value, the quantity demanded of nonmonetary interest-bearing financial assets _____, and this leads to a _____ in the interest rate.
A) decreases; rise B) increases; fall C) decreases; fall D) increases; rise
A government debt larger than the economy's GDP ________
A) is an example of debt repudiation B) is a predictor of future large budget deficits C) is a consequence of debt intolerance D) is a possible consequence of tax smoothing