Globalization Is an Ongoing Process Because

question 42

Multiple Choice

Globalization is an ongoing process because:

• A)government will continue to fail to implement policies that address the structural adjustments necessary to make U.S.firms more competitive.
• B)foreign countries, especially China and India, are moving up the value added chain and will compete with more and more goods.
• C)the globalized AS/AD model will replace the standard AS/AD model, forever changing how economists view the economy.
• D)goods inflation has been solved as a problem for the economy, allowing the government to continue to run expansionary policies.

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Definitions:

Net Exports

The difference between a country's total value of exports and total value of imports.

Domestic Aggregate

A combined total of all economic activities and outputs within a country's borders, often considered in the analysis of economic health.

Interest-bearing Bonds

Debt securities that pay interest to holders, usually at fixed intervals, until the principal amount is repaid at maturity.

Interest Rates

Interest rates are the cost of borrowing money or the payment for offering credit, typically expressed as a percentage of the principal.