At Some Point, as the Price of Exported Products Is

question 39

Multiple Choice

At some point, as the price of exported products is bid up and the price
Of the product imported falls, the prices of the products in both nations:

• A)become more unequal.
• B)approach zero.
• C)approach infinity.
• D)equalize.

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Definitions:

Nominal Rate

The rate of interest before adjustments for inflation or other factors that affect the true cost of borrowing or the real yield on an investment.

Effective Rate

The actual interest rate on an investment or loan, taking into account the effect of compounding over a given period of time.

Effective Annual Rate

It is the interest rate that is adjusted for compounding over a given period. Essentially, it represents the actual annual return on an investment or the actual cost of borrowing.

Per Month

A recurring period or frequency, indicating that an action or event occurs or is calculated on a monthly basis.