Figure 30-2 -Refer to Figure 30-2. Which of the Following Would Cause

question 221

Multiple Choice

Figure 30-2
-Refer to Figure 30-2. Which of the following would cause the change depicted in the figure above?

• A) Lack of investment in infrastructure causes U.S. productivity to fall relative to Chinese productivity.
• B) Tainted cat food from China causes U.S. consumers to decrease their preferences for Chinese goods relative to U.S. goods.
• C) A new trade agreement with China results in the United States removing all tariffs on clothing imported from China.
• D) An expansionary monetary policy causes an increase in the price level of U.S. goods relative to Chinese goods.

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Definitions:

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