If the Inflation Rate in Japan Is Higher Than the Inflation

question 203

Multiple Choice

If the inflation rate in Japan is higher than the inflation rate in the United States

• A) there will be an increase in U.S. imports from Japan.
• B) there will be an increase in Japanese exports to the United States.
• C) there will be no change is U.S. imports from Japan.
• D) there will be a decrease in U.S. imports from Japan.

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Definitions:

Retained Earnings

The portion of a company's profit that is kept or retained within the company, not distributed to shareholders as dividends.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the total number of shares owned by shareholders.

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.