U.S.net Export Spending Falls When

question 229

Multiple Choice

U.S.net export spending falls when

• A)the price level in the United States falls relative to the price level in other countries.
• B)the growth rate of U.S.GDP is faster than the growth rate of GDP in other countries.
• C)the value of the U.S.dollar decreases relative to other currencies.
• D)the inflation rate is lower in the United States relative to other countries.

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Definitions:

Average Total Cost

The cost of producing all items, when divided by the total amount of items produced, shows the cost for each unit produced.

Average Variable Cost

The cost of variable inputs (e.g., raw materials and labor) divided by the total output, showing how variable costs change with output levels.

Market Price

The existing rate at which a service or asset is available for purchase or sale in the market.

Marginal Cost

The financial charge for creating one additional unit of a product or service.