If inflation in the United States is lower than inflation in other countries, then U.S. exports ________ and U.S. imports ________, which _________ net exports. A. increase; increase; decreases B. decrease; increase; decreases C. decrease; increase; increases D. increase; decrease; increases
Added by Rodrigo G.
Step 1
S. inflation is lower than inflation in other countries, so U.S. goods become relatively cheaper over time compared with foreign goods. Show more…
Show all steps
Your feedback will help us improve your experience
Haricharan Gupta and 86 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
If the U.S. nominal exchange rate declines and prices rise faster abroad than in the United States, the real exchange rate: a. decreases, and net exports for the United States decrease. b. decreases, and net exports for the United States increase. c. increases, and net exports for the United States decrease. d. increases, and net exports for the United States increase.
Haricharan G.
Akash M.
'Which of the following does not influence the rate of inflation? a. The number of people affected by inflation b. the rate of trade with other countries c: The rate of growth in other countries d. The rate at which prices are rising'
Shalini T.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD