When the Price Level in Australia Rises Relative to the Price

question 79

Multiple Choice

When the price level in Australia rises relative to the price level of other countries, ceteris paribus, ________ will rise, ________ will fall, and ________ will fall.

• A)imports; exports; net exports
• B)exports; imports; net exports
• C)net exports; exports; imports
• D)net exports; imports; exports

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Definitions:

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Medicare Taxes

Taxes withheld from income to fund Medicare, the United States' federal healthcare program for individuals aged 65 and older and some younger people with disabilities.

Marginal Tax Rates

The rate of tax applied to your last dollar of income, representing what percentage of any additional earned income will be taken as tax.

Average Tax Rates

The ratio of the total amount of taxes paid to the total income, providing a measure of the tax burden.