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.

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Definitions:

Circumstances

The conditions or facts affecting a situation, event, or action.

Bond

A bond is a fixed income instrument that represents a loan made by an investor to a borrower, typically corporate or governmental, where the borrower agrees to pay interest and repay the principal at maturity.

Share

An individual portion of ownership in a company or financial asset.

Distinguish

To recognize or treat someone or something as different from others based on specific characteristics or features.