a) if the price level in the US increased realtive to other nation then the US exports will fall.
b) And the US imports will rise as the foreign goods are cheaper now.
c) Decrease, due to the price rise, the amount of the goods and services purchased will decrease.
Question 3 (3 points) If the price level in the United States increases relative to other...
Question 16 (1 point)If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes:Question 16 options:the output effect.the shift-of-spending effect.the real-balances effect.the foreign purchases effect.Question 17 (1 point)Refer to the diagram. If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be:Question 17 options:E and B, respectively.F and A, respectively.G...
U.S. net export spending falls when? the inflation rate is lower in the United States relative to other countries. the price level in the United States falls relative to the price level in other countries. the value of the U.S. dollar decreases relative to other Currencies. the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries.
1) Suppose interest rates rise in the United States, but they don't rise in other nations. As a result of this change, which of the following is true? I. The demand for the U.S. dollar will increase II. The demand for the U.S. dollar will decrease III. U.S. exports will decrease as a result of the changing value of the U.S. dollar. IV. U.S. exports will increase as a result of the changing value of the U.S. dollar. a) I...
1. When a currency appreciates, the prices of its imports from other countries will: A. increase. B. decrease C. remain constant. D. fluctuates randomly. 2. When the dollar appreciates relative to the Canadian dollar: A. Canadian goods become more expensive in the United States. B. U.S. goods become more expensive in Canada. C) U.S. residents tend to buy more from Canada, since the United States has a weak currency. D) the United States sells more goods to Canada. 3. If...
3&4
3. As the price level decreases, household will be wealthier in real terms. For example, our savings accounts are worth more in real terms if the prices of goods and services falls. As a result, households increase their consumption spending. True or false. A. True B. False 4. If prices in the United States falls relative to our trading partners, our exports should increase and out imports should fall. This leads to an increase in the United States' GDP....
Since the Great Recession, the trade deficit has been decreasing staying about the same increasing none of the above To which of the following countries does the United States exports the largest value of goods Canada Mexico Japan China We can think of an increase in government transfer payments as an increase in G a decrease in G an increase in T a decrease in T When looking only at the import and export of services, the U.S. has a...
Suppose consumer income in the United States increases, and at the same time, the price of crude oil rises. In the scenario above, the equilibrium price of gasoline: Will rise Will not change May rise, fall, or remain unchanged Will fall Question 35 (1 point) In the scenario above, the equilibrium quantity of gasoline: Will increase May increase, decrease, or remain unchanged Will not change Will decrease
Question 19 1 pts Let's say that the following two changes take place in the United States: 1. Corporate tax rates increase, making it less attractive for domestic and foreign corporations to invest in the U.S. 2. The quality of U.S.goods deteriorates, thus decreasing the demand for U.S.goods. Which of the following will happen as a result of these two changes? The U.S. dollar will increase in value and the price of our exports will decrease. The U.S. dollar will...
6. The balance of payments is ..-(A) negative when the nation runs a trade deficit. (B) positive when the nation runs a trade surplus. (C) negative when the country is a borrower in the international apital market. (D) positive when the country is a lender in the international capital market. (E) always equal to zero. 7. If the U.S. dollar increases in value relative to the British pound, (A) U.S. wheat will become cheaper in England. (3) British bicycles will...
Suppose there is an increase in the average level of income in the United States, while the average level of income stays the same in countries that use the Euro as their currency. a) Describe and illustrate with graph the impact on the exchange rate between U.S. dollars and Euros. b) Did the U.S. dollar appreciate, depreciate or neither? Did the Euro appreciate, depreciate or neither? Was the change in the exchange rate associated with a good thing or a...