When the U

question 63

Multiple Choice

When the U.S. price level decreases relative to the rest of the world:

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

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Definitions:

Industry Entry

The act of a new company entering an existing market with the intention of selling goods or services.

Profit Circumstances

Situations or factors that affect a company's ability to generate earnings above its costs.

Monopolistically Competitive

Describes a market structure where many firms offer products that are similar but not perfect substitutes, resulting in some control over pricing.

Short-Run Equilibrium

is a condition in which market supply and demand balance out at a certain price level, but only temporarily.