Question 1
When economic activity abroad is increasing
◦ U.S. exports tend to decrease.
◦ U.S. exports tend to increase.
◦ the U.S. inflation rate tends to fall.
◦ the U.S. inflation rate tends to rise.
Question 2
When U.S. prices are rising relative to those in the rest of the world
◦ U.S. exports tend to increase.
◦ U.S. exports tend to decrease.
◦ U.S. imports tend to decrease.
◦ None of these