What Impact Does a Decrease in the Price Level in the United

question 204

Multiple Choice

What impact does a decrease in the price level in the United States have on net exports and why?

• A)A decrease in the price level increases net exports because lower prices increase the value of the dollar.
• B)A decrease in the price level increases net exports by reducing the relative cost of American goods.
• C)A decrease in the price level reduces net exports because lower prices raise the value of the dollar.
• D)A decrease in the price level reduces net exports because lower prices increase American spending on imports.

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Definitions:

Implied Authority

Power not explicitly granted to an agent but necessary to carry out the agent's duties effectively.

Expressed Agency

A legal relationship where an agent is explicitly granted the authority by the principal to act on their behalf.

Apparent Agency

The legal doctrine that allows a third party to hold a principal liable for the acts of an agent, where the principal has given the appearance of agency.

Ratification

The process by which someone gives formal consent or approval to something, often a legal or contractual agreement.