When the U.S. real interest rate falls ________
A) U.S. dollar assets earn a higher return relative to foreign assets
B) it makes U.S. exports more expensive in foreign currencies
C) imports will decrease
D) all of the above
E) none of the above
C
You might also like to view...
What has been the main argument over recent efforts to replace the personal income tax with a value-added tax?
What will be an ideal response?
A problem in identifying poverty is that the concept of what constitutes a basic need is always changing
Indicate whether the statement is true or false
Intense competition in a market will generally lead to
A) dissatisfaction of consumers about the quality and availability of the product. B) high prices and low quality of the product or service. C) improvements in the quality of the good or service available to consumers. D) production inefficiencies and higher costs.
What does the dotted line between C and D represent?
a. excess production
b. excess consumption
c. aggregate expenditure
d. aggregate production