If the Rate of Inflation in the U

question 224

Multiple Choice

If the rate of inflation in the U.S.falls relative to the rate of inflation in foreign nations,U.S.exports _______ and imports ______.

• A)increase;decrease
• B)decrease;increase
• C)decrease;decrease
• D)increase;increase

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Society

Society refers to a group of individuals living together in a more or less ordered community, sharing common traditions, institutions, and values.

Scarcity

The basic challenge in economics of limitless human desires within a finite resource environment.

Economic Principle

Fundamental theories or laws that underpin the operation of economies and inform decision-making.