If prices rise on average in the U.S. economy, the purchasing ...

[Garrulous]

If prices rise on average in the U.S. economy, the purchasing power of a dollar declines.
 
  Indicate whether the statement is true or false

Question 2

If inflation in the United States is lower than inflation in other countries, what will be the effect on net exports for the United States?
 
  A) Net exports will rise as U.S. exports increase.
  B) Net exports will decrease as U.S. imports decrease.
  C) Net exports will decrease as U.S. exports decrease.
  D) Net exports will rise as U.S. imports increase.

[anoriega3]

Answer to Question 1

TRUE

Answer to Question 2

A