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 113 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
Gracias!

scikid

  • Member
  • Posts: 300
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Mechanisms of pain at the nociceptor level Mechanisms of pain at the nociceptor level
Epidemiologists look for the causes of disease, such as toxic waste and industrial pollution, at the Epidemiologists look for the causes of disease, such as toxic waste and industrial pollution, at the
Ethnic Variations in Prenatal Care within the United States Ethnic Variations in Prenatal Care within the United States
Cereal production in Africa may decrease by as much as 50% by 2080 in some areas Cereal production in Africa may decrease by as much as 50% by 2080 in some areas
Changes in the Level of Education, 1975-2010 Changes in the Level of Education, 1975-2010
Decrease in mean haplotype heterozygosity Decrease in mean haplotype heterozygosity
Video: Anaphylaxis Animation

For a complete list of videos, visit our video library