When the Relative Prices of U

question 98

Multiple Choice

When the relative prices of U.S.-manufactured goods go up, the result is

• A) an increase in exports.
• B) a decrease in exports.
• C) a decrease in imports.
• D) no net change in imports or exports.

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Definitions:

Liabilities

Financial obligations or debts that a business owes to external parties.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim against the company's assets.

Ratio

A quantitative relationship between two numbers, showing how many times one value is contained within another.

Liabilities

Financial obligations or debts that a business owes to others, which must be paid back in the future.