The foreign purchases effect suggests that a decrease in the American price level relative to those in other countries will _ American exports and _ American imports.

Fill in the blank(s) with the appropriate word(s).

increase; decrease

Economics

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Monetary policy has ________ impact on the long-run Phillips curve

A) a positive B) no C) a negative D) an unpredictable

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Economics

Autonomous consumption is 700 and the marginal propensity to consume is 0.6. Calculate the average propensity to save when disposable income is (a) 10,000, (b) 12,000, and (c) 15,000

What will be an ideal response?

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Economics

The foreign purchases effect suggests that a decrease in the American price level relative to those in other countries will _____ American exports and _____ American imports.

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The foreign purchases effect suggests that a decrease in the American price level relative to those in other countries will _ American exports and _ American imports.