Rising Domestic Inflation Rates Can Be Contributing to the Downward

question 64

Multiple Choice

Rising domestic inflation rates can be contributing to the downward sloping dynamic aggregate demand curve through net exports because:

• A)Foreign goods may cost more relative to domestic goods
• B)Foreign goods may be relatively cheaper than domestic goods
• C)Net exports will be increasing
• D)Foreigners will want to invest in the U.S.stock market

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Definitions:

Specific Performance

A legal remedy requiring a party to perform a specific act, often the completion of a contract, rather than paying damages for non-performance.

Contract Law

The body of law governing the formation, execution, and enforcement of agreements between parties.

Frustration

A legal doctrine freeing both parties from their contractual obligations if an unexpected event renders the contract impossible to fulfill.

Contract Law

The body of law that governs the formation, performance, and enforcement of agreements between parties.