When the U.S. price level falls, the open economy effect indicates that
A) U.S. imports will rise.
B) U.S. residents will move away from domestic goods and buy more foreign goods.
C) U.S. exports will increase.
D) foreigners will buy fewer U.S. goods.
C
Economics
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When net capital flows are negative
A) net foreign investment is negative. B) capital inflows are less than capital outflows. C) capital outflows are less than capital inflows. D) A and B are both correct.
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Your favorite uncle advises you to purchase long-term bonds because their interest rate is 10%. Should you follow his advice?
What will be an ideal response?
Economics