No
It does not actually matter, because what we buy is the quality of the product not where the product is from.
Answer:
The effects of inflation in the U.S. trading partner, will pass through the U.S. economy in the form of exports: since the U.S. imports goods from ABC islands, the higher prices in the ABC islands will make imports from there more expensive, contributing to a small raise in inflation in the overall U.S. economy.
However, exports from ABC Islands are likely to be a small component of U.S. Aggregate demand, so the effect in overall inflation is likely to be small.
Despite this, the fed can step in and raise interest rates by contracting the money supply. This is contractionary monetary policy, and it is used when inflation is rising. It lowers the value of the U.S. dollar in international markets, but it increases output price level.
The correct answer is choice A.
The definition of a rivalrous product is when the consumption of a good or service prevents the simultaneous consumption by another consumer, or reduces the the quantity available for consumption by other consumers. Choice A - your consumption of the product reduces the quantity available for others to consume meets this definition.
