If the US Price Level Decreases, Other Things Equal, U

question 24

Multiple Choice

If the U.S. price level decreases, other things equal, U.S. net exports will

• A)increase
• B)decrease
• C)remain constant, since net exports are assumed to be constant
• D)increase only if the marginal propensity to import also increases
• E)increase only if there is inflation abroad

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Definitions:

Bona Fide Purchaser

A person who buys property in good faith, without notice of any prior claims or disputes over the property, and is therefore protected under law.

Attachment

A legal procedure by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor or sold for the benefit of the creditor.

Financing Statement

A document filed to give public notice of a secured party's interest in the debtor's personal property.

Charter Business

A company that operates under a charter, offering specified services or engaging in a particular type of business, often subject to special regulations or privileges.