The net exports effect exists because a:
a. higher price level will reduce interest rates and stimulate foreign investment.
b. lower price level will make domestically produced exports less expensive relative to foreign goods.
c. higher price level will reduce the purchasing power of money.
d. lower price level will encourage Americans to import more foreign goods.
b
Economics
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A) the saving rate B) the capital-labor ratio C) the depreciation rate D) consumption per worker
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The long run is
A) over five years. B) the time period in which all factors of production can be varied. C) when all factors of production are fixed. D) over one year.
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