Which of the following is likely to have the most effect on a country's demand for imports?
A)Foreign income
B)Prices of domestic products relative to the prices of foreign products
C)The volume of the country's exports
D)The change in the country's official settlements balance

Question

Quizplus · Accepted Answer

The prices of domestic products relative to the prices of foreign products directly affect a country's demand for imports. If domestic products are more expensive than foreign products, consumers are more likely to purchase imports, increasing the country's demand for imports.

Which of the Following Is Likely to Have the Most