As the US Price Level Rises Relative to Price Levels in Other

question 204

Multiple Choice

As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.?

• A) consumption and net exports would decline
• B) consumption and net exports would increase
• C) consumption would increase and net exports would decrease
• D) consumption would decrease and net exports would increase
• E) consumption and net exports would remain constant

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Definitions:

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