If the Rate of Inflation Overseas Rises Relative to the Rate

question 81

Multiple Choice

If the rate of inflation overseas rises relative to the rate of inflation in the United States, U.S. net exports will tend to ____, causing the exchange value of the U.S. dollar to ____.

• A)​rise; rise
• B)​rise; fall
• C)​fall; rise
• D)​fall; fall

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Definitions:

Verbal Offer

A verbal offer is an oral proposal or agreement, not written, about a transaction or contract, which can sometimes be legally binding in certain contexts.

Bilateral Contract

A type of contract that involves mutual obligations, where each party to the contract is both a promisor and promisee.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.