If U.S. prices increase relative to the rest of the world, we would expect imports:
A. to increase and exports to fall.
B. to decrease and exports to increase.
C. as well as exports to increase.
D. as well as exports to decrease.
A. to increase and exports to fall.
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According to the text, what best explains the price for federal land that would have maximized real GNP?
a. Some price above zero that maximizes government revenues to be redistributed fairly to the people. b. Some price above zero that minimizes negative environmental externalities. c. A price equal to zero that eliminates the welfare loss associated with land not used for production. d. A subsidized price that distributes land based on egalitarian principles.
If the price of pizza is $10 this year and $15 next year, then 200 pizzas would contribute
A. $2,000 to this year’s GDP and $2,000 to next year’s nominal GDP. B. $3,000 to this year’s nominal GDP and $3,000 to next year’s nominal GDP. C. $2,000 to this year’s nominal GDP and $3,000 to next year’s nominal GDP. D. $3,000 to this year’s GDP and $2,000 to next year’s GDP.