If US Prices Increase Relative to the Rest of the World

question 165

Multiple Choice

If U.S. prices increase relative to the rest of the world, we would expect:

• A) imports to increase and net exports to increase.
• B) exports to decrease and net exports to decrease.
• C) imports to increase and net exports to increase
• D) exports to decrease and net exports to increase.

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Definitions:

Disadvantages

The negative or less favorable aspects of something that tend to hinder or lower its effectiveness, appeal, or usability.

Mangrove Forests

Coastal ecosystems characterized by mangrove trees, which are uniquely adapted to thrive in salty and brackish waters.

Large Amounts

Refers to quantities that are considerably above the average or expected size, number, or degree.

Highly Efficient

Describes a system or process that achieves maximum productivity with minimum wasted effort or expense.