If incomes in the United States increase,other things equal,then U.S._____.
A)imports increase and exports remain constant
B)exports increase and imports decrease
C)imports decrease and exports decrease
D)imports remain constant and exports increase
E)net exports remains constant

Question

Quizplus · Accepted Answer

When incomes in the United States increase, consumers have more disposable income, which often leads to an increase in consumption, including the consumption of imported goods. Therefore, imports tend to increase. This choice does not necessarily imply that exports will remain constant, but among the given options, it most accurately reflects the direct impact of increased U.S. incomes on imports.

If Incomes in the United States Increase,other Things Equal,then U