When the prices of a country's imports increase, the prices of domestic goods may increase. This occurs because
A. an increase in the prices of imported inputs will cause aggregate supply to increase.
B. an increase in the prices of imported inputs will cause aggregate demand to decrease.
C. if import prices rise relative to domestic prices, households will tend to substitute domestically produced goods and services for imports.
D. if import prices rise relative to domestic prices, households will tend to substitute imports for domestically produced goods and services.
Answer: C
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In 2008, when the net worth of Trust Bank became negative, depositors made a beeline to withdraw their deposits. They feared they might lose all of their deposits if they did not withdraw them. Such a situation is known as: a. a liquidity trap. b. a bank run
c. hyperinflation. d. disinflation.
Private property:
A. discourages cooperation because people don't want to part with what they own. B. discourages innovation, as people are often afraid to risk losing their own property. C. encourages owners to maintain or improve their property so as to preserve or enhance value. D. does everything indicated by the other answers.