If prices increase only in the United States, then:
A) U.S. goods become relatively more expensive than goods from other countries.
B) U.S. goods become relatively less expensive than goods from other countries.
C) the prices of foreign goods must rise.
D) the income level of people in the US must rise.

Question

Quizplus · Accepted Answer

If prices increase only in the United States, then U.S. goods become relatively more expensive than goods from other countries. This reduces demand for U.S. goods and increases demand for cheaper foreign goods.

If Prices Increase Only in the United States, Then