Everything Else Constant, the International Trade Effect Indicates That Aggregate

question 40

Multiple Choice

Everything else constant, the international trade effect indicates that aggregate expenditures in the domestic economy fall when:

• A)domestic prices fall relative to foreign prices.
• B)domestic interest rates fall relative to foreign interest rates.
• C)domestic prices rise relative to foreign prices.
• D)domestic purchasing power rises relative to foreign purchasing power.
• E)domestic interest rates rise relative to foreign interest rates.

---

Definitions:

Protocol

A set of rules governing the exchange or transmission of data between devices.

Token

A piece of data or a digital asset used in various applications, representing a right, access, or asset.

Terminator

A device or program that signals the end of a data string or message transmission session.

Honey Pot

A computer system that’s set up to attract unauthorized users by appearing to be a key part of a network or a system that contains something of great value.