An increase in the U.S. GDP will result in
A. an increase in exports of the United States.
B. an increase in imports of the United States.
C. an increase in the dollar exchange rate and a decrease in imports of the United States.
D. an increase in the dollar exchange rate and a rise in imports of the United States.
Ans: B. an increase in imports of the United States.
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A "great merger movement," whereby firms combined with former rivals to become large firms, began in the 1890s. Who was the first President to look to bigger government as a way to cope with the economic power of these concentrated industries?
(a) Woodrow Wilson (b) Herbert Hoover (c) Theodore Roosevelt (d) Franklin Roosevelt
"Everybody has a comparative advantage in something." Do you agree or disagree? Why?
What will be an ideal response?
If a competitive firm is losing money then it should:
a. always shut down. b. shut down if its losses are greater than total fixed costs. c. shut down if its total fixed costs are greater than losses. d. raise its price.
A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ______ in potential real GDP and _______ in the price level
a. an increase; no change b. a decrease; no change c. no change; an increase d. no change; a decrease