If the Japanese Price Level Falls Relative to the Price

question 113

Multiple Choice

If the Japanese price level falls relative to the price level in the United States, then:

• A) Japanese buy less U.S. exports.
• B) the demand for dollars decreases.
• C) the supply of dollars increases.
• D) the value of the dollar falls.
• E) all of these are true.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of input, such as labor, in the production process.

Resource

An input used in the production of goods or services, such as labor, land, capital, and technology.

Units

A standard quantity or measurement used to express the quantity of a product or dimension of a measure.

Purely Competitive Market

A market structure where no single buyer or seller has the power to influence prices, and products are perfectly substitutable.