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Suppose United States Net Exports Are -$50 Billion

question 134

Multiple Choice

Suppose United States net exports are -$50 billion.Then the dollar depreciates.In the short run,the United States may move downward along the J-curve,with net exports _________ and the AD curve shifting to the _______________.


Definitions:

Commanding General

A high-ranking military officer in charge of a particular command or operation, responsible for strategic planning and executing military operations.

United States Army

The land service branch of the U.S. Armed Forces, responsible for land-based military operations.

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of currency.

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