When the United States imports goods and services from the rest of the world
A) we receive payments from the rest of the world.
B) we make payments to the rest of the world.
C) we increase our inflation rate.
D) we decrease our inflation rate.
B
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A small country is an international borrower if its real interest rate without foreign borrowing is ________ the world real interest rate
A) higher than B) equal to C) lower than D) not comparable to
An increase in the marginal propensity to import will cause
A) the multiplier to increase and a given change in government spending (G) to have a larger effect on domestic output. B) the multiplier to increase and a given change in government spending (G) to have a smaller effect on domestic output. C) the multiplier to decrease and a given change in government spending (G) to have a larger effect on domestic output. D) the multiplier to decrease and a given change in government spending (G) to have a smaller effect on domestic output.