As the Incomes in Foreign Nations Rise, Their Imports from the United

question 161

Multiple Choice

As the incomes in foreign nations rise, their imports from the United States will

• A) fall as they become less dependent on other countries.
• B) rise.
• C) not be affected.
• D) rise and the U.S. dollar exchange rate will fall.

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Definitions:

Stream Of Income

A consistent or predictable flow of revenue, which can come from investments, real estate, or other sources over a period of time.

Rate Of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Real Return

The return on an investment after adjusting for inflation, indicating the actual purchasing power gained or lost.

American Stock Market

Refers to the financial markets in the United States where stocks, bonds, and other securities are bought and sold, including major exchanges like the NYSE and NASDAQ.