If a Country Experiences High Inflation Relative to the U

question 40

Multiple Choice

If a country experiences high inflation relative to the U.S., its exports to the U.S. should ____, its imports should ____, and there is ____ pressure on its currency's equilibrium value.

• A) decrease; increase; upward
• B) decrease; decrease; upward
• C) increase; decrease; downward
• D) decrease; increase; downward
• E) increase; decrease; upward

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Definitions:

Inspects Goods

The act of examining products for quality, safety, and compliance with specifications or regulations before acceptance.

Partially Destroyed

Refers to an item or property that has been significantly but not completely damaged or ruined.

Void Contract

An agreement that is invalid from the outset and has no legal force or effect, making it unenforceable by law.

Cure

A breaching party’s right to provide conforming goods when nonconforming goods were initially delivered; subject to a reasonable time test.