If Inflation in the United States Is Lower Than Inflation

question 63

Multiple Choice

If inflation in the United States is lower than inflation in other countries,what will be the effect on net exports for the United States?

• A)Net exports will rise as U.S.exports increase.
• B)Net exports will rise as U.S.imports increase.
• C)Net exports will decrease as U.S.exports decrease.
• D)Net exports will decrease as U.S.imports decrease.

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Definitions:

Perfection

The process or action of making something completely free from faults or as close to it as possible.

Secured Party

An individual or institution that holds an interest in a secured asset or collateral to secure repayment of a loan or other credit extension.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.

Perfected Through Possession

A legal status indicating that a party's interest in a piece of property or an asset is fully secured and acknowledged legally because they possess it.