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

Ask an Expert

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

Write your message here..

Related Questions

E.., law of indefference curve law of indefference curve

Fiscal policy and budget, Fiscal policy is the program of government’s with... Fiscal policy is the program of government’s with respect to the amount and composition of (i) expenditure: the purchase of commodities and services, and spending in the form of su

Industrial organization, There are very examples of perfect competition. Ye... There are very examples of perfect competition. Yet in the study of industrial organization, significant discussion is focused on this type of market. Explain why.

Define individual consumer and total producer surplus, Define the individua... Define the individual consumer surplus and total producer surplus. Individual consumer: Individual consumer surplus is the net profit to an individual buyer through the purc

Unemployment, critically analyse the ways at which the govement of zimbabwe... critically analyse the ways at which the govement of zimbabwe has put in place to address unequal employment opportunitiesbetween men andwomen

Producyion function, define production function output effect? define production function output effect?

Differentiate comparative and absolute advantage, What is the difference be... What is the difference between Comparative Advantage and Absolute Advantage? Difference between Comparative Advantage and Absolute Advantage: Comparative advantage: it is

Components of trade policy, COMPONENTS OF TRADE POLICY: External secto... COMPONENTS OF TRADE POLICY: External sector reforms beginning with 1991 included dismantling of  trade restrictions along with tariff rationalization, a move towards current a

Inflation, Identify trends or other patterns in inflation within the Spanis... Identify trends or other patterns in inflation within the Spanish economy over the last five years using quarterly data. You must include data to justify the trends described.

Employment, critically analyse the ways at which the government of zimbzbwe... critically analyse the ways at which the government of zimbzbwe has put in place to address unequal employment opportunities between men and women