If Inflation in the United States Is Higher Than Inflation

question 19

Multiple Choice

If inflation in the United States is higher than inflation in other countries,what will be the effect on net exports for the United States?

• A)Net exports will rise as U.S.exports increase.
• B)Net exports will rise as U.S.imports decrease.
• C)Net exports will decrease as U.S.exports decrease.
• D)Net exports will decrease as U.S.imports decrease.

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Definitions:

Sales Dollars

The total monetary amount generated from selling goods or services.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Depreciation Expense

Depreciation Expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting its wear and tear or obsolescence.

Contra-Asset

A contra-asset account is an asset account where the balance of the account is either zero or a credit balance, used to reduce the value of the related asset, such as accumulated depreciation for fixed assets.