An increase in U.S. income would lead to
A)an increase in U.S. exports and a decrease in U.S. imports
B)a decrease in U.S. exports and an increase in U.S. imports
C)an increase in both U.S. imports and U.S. exports
D)a decrease in both U.S. exports and U.S. imports
E)no change in U.S. exports and an increase in U.S. imports

Question

Quizplus · Accepted Answer

An increase in U.S. income typically leads to higher consumption, which increases demand for imported goods, thus increasing U.S. imports. U.S. exports are more influenced by foreign income levels rather than domestic income changes.

An Increase in U.S. Income Would Lead to