If the Price Level in the United States Increases Relative

question 193

Multiple Choice

If the price level in the United States increases relative to prices in foreign countries, then

• A) imports and exports of the United States will increase.
• B) imports and exports of the United States will decrease.
• C) imports of the United States will decrease and exports of the United States will increase.
• D) imports of the United States will increase and exports of the United States will decrease.

---

Definitions:

Units-Of-Output Depreciation

A depreciation method that allocates an asset's cost based on its usage or production levels, rather than simply the passage of time.

Depreciable Cost

The total cost of a tangible asset that is subject to depreciation, excluding salvage value, to allocate over the asset's useful life.

Depreciation Rate

The percentage rate at which an asset is depreciated across its useful life, affecting the value of the asset on the balance sheet over time.

Straight-Line Method

A method of calculating depreciation by dividing the cost of an asset, minus its salvage value, by its useful life.