The open economy effect suggests that A) a decrease in ...

[nautica902]

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

[potomatos]

Answer to Question 1

A

Answer to Question 2

D