Assuming a Fixed Exchange Rate, a Decrease in U

question 7

Multiple Choice

Assuming a fixed exchange rate, a decrease in U.S.prices relative to European prices will:

• A)decrease European exports to the United States.
• B)increase U.S.imports from Europe.
• C)decrease aggregate spending in the U.S.
• D)not affect U.S.exports or imports.
• E)raise the purchasing power of U.S.consumers.

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Definitions:

Charitable

Relating to or characterized by the giving of money, goods, or help to those in need.

Praying

A religious practice involving communion with a deity or deities through invocations, confessions, or expressions of gratitude.

Protestant Ethic

The concept introduced by Max Weber suggesting that the Calvinist emphasis on hard work, thrift, and efficiency in one's worldly calling was a driving force behind the development of capitalism.

God's Chosen

A belief held within some religious groups that they have been specifically chosen by a divine power for a particular purpose.