When Inflation Occurs, Net Exports Will

question 145

Multiple Choice

When inflation occurs, net exports will

• A)increase as imports decrease.
• B)increase as exports increase.
• C)decrease as imports decrease.
• D)decrease as imports increase.

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Definitions:

Inherited

Assets or properties received from ancestors or previous generations through a legal process called inheritance.

Utilitarian Justification

A moral philosophy that advocates for actions that maximize happiness and well-being for the majority of a population.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) from consuming each additional unit decreases.

Maximin Criterion

The claim that the government should aim to maximize the well-being of the worst-off person in society.