U.S. exports tend to decrease when
A. foreign GDPs are rising.
B. the inflation rate in the United States is lower than the inflation rates in other countries.
C. U.S. prices are low relative to those in the rest of the world.
D. economic activity abroad is decreasing.
Answer: D
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A trigger strategy is one in which a player
A) cooperates in the current period if the other player cooperated in the previous period, but cheats in the current period only if the other player cheated in the previous period. B) cheats in the current period if the other player cooperated in the previous period, but cooperates in the current period if the other player cheated in the previous period. C) cooperates in the current period if the other player has always cooperated, but cheats forever if the other player ever cheats. D) cheats in the current period if the other player has always cheated, but cooperates forever if the other player has ever cooperated.
A devaluation of the exchange rate is a policy action that
A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate.