The open economy effect suggests that
A) a decrease in domestic price level will cause foreign residents to buy more domestic goods, increasing net exports.
B) a rise in domestic price level will cause domestic residents to buy fewer imported goods.
C) a rise in domestic price level will cause foreign residents to buy more domestic goods.
D) a decrease in domestic price level will cause foreign residents to buy fewer domestic goods, increasing net exports.
A
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The formula for the computation of labor productivity is
A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population.
At any given moment there is one exchange rate: a. for all the world's currencies
b. for currencies in the free world. c. between every pair of currencies. d. established by the Federal Reserve System.