If Inflation in the United States Is Higher Than Inflation

question 19

Multiple Choice

If inflation in the United States is higher than inflation in other countries,what will be the effect on net exports for the United States?

• A)Net exports will rise as U.S.exports increase.
• B)Net exports will rise as U.S.imports decrease.
• C)Net exports will decrease as U.S.exports decrease.
• D)Net exports will decrease as U.S.imports decrease.

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Definitions:

Trade Barriers

are government-imposed restrictions on the exchange of goods and services across borders, including tariffs, quotas, and regulations.

Teamsters

A member of a labor union in North America primarily representing workers in the transport and freight industries.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.

Nonunion Labor

Refers to workers who are not members of a labor union and therefore typically do not have the collective bargaining protections and benefits that unionized workers have.