If the Price Level in the United States Decreases Relative

question 59

Multiple Choice

If the price level in the United States decreases 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:

Receipt

A receipt is a document acknowledging that a person has received money or property in payment following a sale or other transfer of goods or provision of a service.

Form 1099-INT

A tax form used to report interest income earned from banks, savings accounts, or other financial institutions during the tax year.

Interest Income

Income earned from deposit accounts such as savings accounts, CDs, or from loans and bonds issued by the taxpayer.

Workers' Compensation

Insurance providing wage replacement and medical benefits to employees injured in the course of employment.