In the long run, if imports increase, then exports
A) will not change.
B) will decrease.
C) will also increase.
D) will become zero.
Answer: C
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The marginal cost of serving an additional user of a public good is zero.
Answer the following statement true (T) or false (F)
Last year the Jones family earned $40,000. This year their income is $42,000. In an economy with an inflation rate of 10 percent, which of the following is correct?
A. The Jones' nominal income and real income have both fallen. B. The Jones' nominal income and real income have both risen. C. The Jones' nominal income has increased and their real income has fallen. D. The Jones' nominal income has decreased and their real income has risen.
When the Fed reduces the money supply, it will cause a decrease in aggregate demand because:
A. real rates will rise, lowering business investment and consumer spending. B. the dollar will depreciate on the foreign exchange market, leading to an increase in net exports. C. lower interest rates will cause the value of assets (for example, stocks) to rise. D. the national debt will increase, causing consumers to reduce their spending.
A concentration ratio is used to
A) determine whether a market structure is oligopoly. B) determine the price level relative to firms' marginal costs. C) determine the degree of homogeneity in the market. D) determine the absolute size of a market.