Suppose Americans Buy Inputs from Foreigners

question 188

Multiple Choice

Suppose Americans buy inputs from foreigners.When the price of foreign inputs falls,the U.S.SRAS curve __________,which tends to __________the U.S.price level.

• A) shifts rightward; reduce
• B) shifts leftward; increase
• C) shifts leftward; reduce
• D) remains constant; increase

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Definitions:

Required Rate Of Return

This is the minimum rate of return on an investment that an investor deems acceptable, taking into account the investment's risk level and opportunity costs.

Capital Budgeting

The process of planning and managing a company's long-term investments in major assets.

Investment Required

The total amount of capital needed to undertake a specific project, purchase, or investment.

Project Profitability Index

A calculation used to determine the relative profitability of a project by dividing the present value of future cash flows by the initial investment cost.