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

MONETARY POLICY, What are the instruments of monetary policies What are the instruments of monetary policies

Gross Domestic Product, benefit of GDP benefit of GDP

Influence the risk accompanying long-term contracts, What impact will high ... What impact will high and variable rates of inflation have on the economy? How will they influence the risk accompanying long-term contracts and related business decisions?

What is price elasticity of demand, Explain the elasticity concept as it ap... Explain the elasticity concept as it applies to necessities and luxuries. Calculate the price elasticity of demand when P= 160 - Q= 480: and when P=240 - Q=320. Calculate and inter

Michaels indifference curve and dwights indifference curve, Suppose that Mi... Suppose that Michael and Dwight each have a $60 weekly entertainment budget. They pay the same prices for two goods, "an evening reading books" (an ERB) and "an evening of beer and

Explain friis equation- affective aperture, In your own words, explain the ... In your own words, explain the following: a) affective aperture, b) array factor, c) Friis equation, d) Antenna H-plane and E-plane, e) radiation resistance

Consumer Price Index, What is the formula for consumer price index? What is the formula for consumer price index?

.sohkhlet, What do is and LM curve signify? What do is and LM curve signify?

How do trade barriers affect international trade, Trade barriers come in a ... Trade barriers come in a lot of forms. Quota is one. This is when a country sets a limit to the imported products. This is completed for a number of reasons. One is due to the gove

What is real gross domestic product, What is Real GDP To be able to ma... What is Real GDP To be able to make reasonable comparisons of GDP over time, we must adjust for inflation. For instance, if prices are doubled over 1 year then GDP would doubl