The foreign purchases effect states that when our price level increases, this tends to ______.
Fill in the blank(s) with the appropriate word(s).
increase imports and decrease exports
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Which group of countries benefits most from trade?
a. low-income countries b. low- and medium-income countries c. high-income countries d. medium- and high-income countries
Which of the following is the best example of a supply shock?
a. an increase in the availability of capital and machinery due to normal changes in business investment b. a decrease in the productivity of the labor force due to a decline in the average educational level of workers c. a decline in agricultural output due to a summer drought d. an increase in output as a result of an expansion in employment
When reality show participants travel through foreign countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Demand for U.S. dollars and a supply of a foreign currency. C. Supply of U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.
The amount of money that people wish to hold to use in transactions varies directly with
A. their planned near-term purchases. B. the interest rate. C. the money supply. D. the income tax rate.