During the 1970s, U

question 189

Multiple Choice

During the 1970s, U.S. prices generally rose faster than prices in other parts of the world. Which of the following changes would the open economy effect predict took place in response to these price level changes?

• A)​Americans reduced the proportion of foreign goods bought since their foreign prices became relatively lower.
• B)​Americans reduced the amount of investment they undertook because interest rates increased.
• C)​Americans reduced the amount of goods and services they wanted to purchase for consumption because they felt less wealthy.
• D)​Americans reduced the fraction of purchases they made from domestic producers of goods and services, since foreign prices became relatively lower.

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Definitions:

Laryngoscope

A medical instrument used to obtain a view of the vocal folds and the glottis, which is the space between the vocal cords.

Laryngoscopy

A diagnostic procedure that uses a special instrument called a laryngoscope to view the throat and larynx.

Pertussis

A highly contagious bacterial disease also known as whooping cough, characterized by intense coughing fits.

Croup

An upper airway infection that leads to swelling inside the throat and causes a distinctive barking cough.