Goods and services purchased from international sources are

The U.S. balance of payments status may improve when

A) the inflation rate increases in the United States relative to other countries. B) political instability in other countries increases. C) the world demand for U.S. products falls. D) the American government increases its spending on foreign aid.

Monopolistic competition is a market structure in which

A) firms produce and sell products for which there are no close substitutes. B) the demand curve for a typical firm is horizontal. C) firms cannot influence the market price. D) barriers to entry are low.