A decrease in the U.S. price level, other things constant, will _____
a. stimulate U.S. exports, pushing the aggregate demand curve to the right
b. stimulate U.S. imports, pushing the aggregate demand curve to the right
c. stimulate U.S. exports but discourage imports, causing a downward movement along a given aggregate demand curve
d. discourage U.S. exports but stimulate imports, causing an upward movement along a given aggregate demand curve
e. not affect U.S. net exports, so the aggregate quantity demanded will remain constant
c
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For a perfectly competitive firm with a known marginal cost and random demand, as the expected marginal revenue increases, the profit-maximizing quantity ________.
A) approaches zero B) increases C) does not change D) decreases
If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.
A. producer B. net exporter C. importer and exporter D. net importer
Refer to the information provided in Table 14.4 below to answer the question that follows. Table 14.4B's Strategy ?Raise PriceDon't Raise Price?RaiseA's profit $6,000A's profit $20,000?PriceB's profit $6,000B's profit $30,000A's Strategy????Don'tA's profit $30,000A's profit $10,000?RaiseB's profit $20,000B's profit $10,000Refer to Table 14.4. The Nash equilibrium in the game is
A. (Raise Price, Don't Raise Price). B. (Don't Raise Price, Raise Price). C. (Don't Raise Price, Don't Raise Price). D. Both A and B are correct.
Refer to Table 2-11. If the two countries specialize and trade, who should export digital cameras?
A) South Korea B) China C) There is no basis for trade between the two countries. D) They should both be importing digital cameras.