The open economy effect suggests that
A) a decrease in domestic price level will cause foreign residents to buy more domestic goods, increasing net exports.
B) a rise in domestic price level will cause domestic residents to buy fewer imported goods.
C) a rise in domestic price level will cause foreign residents to buy more domestic goods.
D) a decrease in domestic price level will cause foreign residents to buy fewer domestic goods, increasing net exports.
Question 2
The ________ plots the relationship between prices and the quantity that buyers are willing to purchase.
A) supply curve B) isoquant C) indifference curve D) demand curve
Manta ray in the open ocean
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