Everything Else Constant, the International Trade Effect Indicates That Aggregate

question 40

Multiple Choice

Everything else constant, the international trade effect indicates that aggregate expenditures in the domestic economy fall when:

• A)domestic prices fall relative to foreign prices.
• B)domestic interest rates fall relative to foreign interest rates.
• C)domestic prices rise relative to foreign prices.
• D)domestic purchasing power rises relative to foreign purchasing power.
• E)domestic interest rates rise relative to foreign interest rates.