During the 1970s, U

question 167

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:

Medicaid

A healthcare plan for low-income people that is administered by state governments but funded by both state and federal funds.

Low-Income Group

Individuals or families that fall below a certain income threshold, often defined by government standards, which qualifies them for certain forms of assistance.

Health Care Plans

Arrangements made by individuals or employers to cover medical expenses, offering a range of medical services often through a network of providers.

Property Damage Liability

Insurance coverage that pays for damage caused by the policyholder’s vehicle to another person’s property.