Net Exports and the price level, Macroeconomics

Ok...

So if the price level is rising, this means that inflation is rising as well, so the value of the dollar in the US would decrease meaning that purchasing power decreases as well. According to this logic, Net Exports would increase because imports would become more expensive and exports would increase. According to my teacher this is wrong can you explain why?
Posted Date: 3/19/2013 12:27:34 PM | Location : United States







Related Discussions:- Net Exports and the price level, Assignment Help, Ask Question on Net Exports and the price level, Get Answer, Expert's Help, Net Exports and the price level Discussions

Write discussion on Net Exports and the price level
Your posts are moderated
Related Questions

What are the two main costs of economic growth The two main costs of economic growth are resource depletion and environmental damage. Economic activity needs factor inp

Consider the following homogenous difference equation: xt=b0+b1xt-1 a) Iterate backwards xt can be written in terms of xt-2. b) Now show xt can be written in terms of xt-3 a

You make a monthly deposit of $1,000 into a saving account for the next 10 years. How much can you withdraw immediately after your last deposit if your saving account pays 6% per y

Please select either question (a) or question (b).  Do NOT answer both questions. a.  Mr. William Randolph Hearst is an entrepreneur based in California.  He owns many newspaper

Explain what convex indifference curves means in terms of marginal utility. What properties must a utility function have in order to obtain convex indifference curves?

Examine the pros and cons of commercial transactions in blood from the egoistic, the utilitarian, and the Kantian perspectives

The government in the cross model Net taxes NT(Y) depends positively on real GDP in the cross model In this model when national income increase

bank A has a leverage ratio of 10 while bank B has a leverage ratio of 20 similar losses on bank loans at the two banks cause the value of their assets to fall by 7 percent. Which

Determine about the interest rates The interest rate may be fixed or floating. If it is fixed, you will pay the same percentage for the entire duration of the loan. With a floa