Refer to Figure 19-1. Which of the following would cause the ...

[joe]

Refer to Figure 19-1. Which of the following would cause the change depicted in the figure above?
 
  A) European productivity rises relative to American productivity.
  B) The U.S. removes a quota on wristwatches from the European Union.
  C) Americans increase their preferences for goods produced in the EU relative to American goods.
  D) The price level of goods produced in the EU increases relative to the price level of goods produced in the United States.

Question 2

What is depreciation?
 
  What will be an ideal response?

[smrtceo]

Answer to Question 1

D

Answer to Question 2

Depreciation is the decline in an asset's economic value over time.

[joe]

Excellent

[gcook]

Thanks for the timely response, appreciate it