This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What impact does a decrease in the price level in the United States have on net exports and why? ... (Read 101 times)

ss2343

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
What impact does a decrease in the price level in the United States have on net exports and why?
 
  A) A decrease in the price level reduces net exports because lower prices increase American spending on imports.
  B) A decrease in the price level increases net exports because lower prices increase the value of the dollar.
  C) A decrease in the price level reduces net exports because lower prices raise the value of the dollar.
  D) A decrease in the price level increases net exports by reducing the relative cost of American goods.

Question 2

According to the Taylor rule, the Fed should set the target for the federal funds rate equal to the sum of the equilibrium real federal funds rate, the current inflation rate, one-half times the ________, and one-half times the ________.
 
  A) interest rate gap; inflation gap B) inflation gap; output gap
  C) interest rate gap; output gap D) unemployment gap; government-spending gap


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lauravaras

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B


ss2343

  • Member
  • Posts: 548
Reply 2 on: Jun 29, 2018
:D TYSM

rachel

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Energy Level Diagram of Hydrogen Energy Level Diagram of Hydrogen
The United States under the Articles of Confederation, 1787 The United States under the Articles of Confederation, 1787
Phrases that Decrease Customer Service Level Phrases that Decrease Customer Service Level
One of the cultural privileges of being white in the United States is less suspicion of wrongdoing. One of the cultural privileges of being white in the United States is less suspicion of wrongdoing.
Rising sea level: Some areas will be affected by a rise of just 40 cm Rising sea level: Some areas will be affected by a rise of just 40 cm
The Nile Delta will be strongly affected by a rise in sea level of 50 cm The Nile Delta will be strongly affected by a rise in sea level of 50 cm
Video: Structures that affect circulation - arterioles and vasomotor responses and venous return

For a complete list of videos, visit our video library