As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.?
a. consumption and net exports would decline
b. consumption and net exports would increase
c. consumption would increase and net exports would decrease
d. consumption would decrease and net exports would increase
e. consumption and net exports would remain constant
A
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What are the costs of capital mobility?
What will be an ideal response?
If demand increases in a perfectly competitive market,
a. then, in the short run, existing firms will find their profits diminishing, or their losses increasing b. existing firms will earn an economic profit c. the market price will decrease d. each firm will produce more along its short-run supply curve and total output will increase along the short-run market supply curve e. quantity demanded will increase and quantity supplied will decrease
If a country fixes its exchange rate below the equilibrium value,
a. the central bank must buy its own b. there will be downward pressure on the exchange rate c. its currency will appreciate d. the result is an excess demand for that country's currency e. its currency will depreciate
The four somewhat overlapping theories of how the entrepreneur is able to earn a profit are: (1) ___________; (2) ___________; (3) ___________; and (4) ____________.
Fill in the blank(s) with the appropriate word(s).