If the Price Level Increases in the United States Relative

question 112

Multiple Choice

If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes

• A) the output effect.
• B) the foreign purchases effect.
• C) the real-balances effect.
• D) the shift-of-spending effect.

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Definitions:

Whole-Object Assumption

The assumption that words refer to whole objects and not to their component parts or characteristics.

Respiratory Distress Syndrome

A cluster of breathing problems, including weak and irregular breathing, to which preterm babies are particularly prone.

Mutual Exclusivity Assumption

A concept in language acquisition where young children assume that objects only have one label.

Infant-Directed Speech

A special, modified way of speaking adults use when talking to babies, characterized by higher pitch, slower rate, and exaggerated intonation, thought to aid language learning.