U.S. Exports Tend to Decrease When

question 188

Multiple Choice

U.S. exports tend to decrease when

• A) economic activity abroad is increasing.
• B) foreign GDPs are rising.
• C) U.S. prices are rising relative to those in the rest of the world.
• D) the U.S dollar is weak compared to foreign currencies.

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Definitions:

Money Creation

The process by which the money supply of a country or an economic or monetary region is increased.

Government Spending

The total expenditure incurred by a government in funding its operations and services, including infrastructure, public services, and welfare programs.

Nominal Interest Rate

The nominal interest rate represents the rate of interest before adjustments for inflation, indicating the percentage increase in money lenders earn or borrowers pay over a specific period.

Real Interest Rate

The interest rate that has been modified to account for inflation, indicating the actual cost of borrowing or the true earnings from savings.