Which of the following will cause a decrease in U.S.gross exports?
A)An increase in foreign consumer income.
B)A decrease in foreign business purchases of U.S.output.
C)An increase in foreign wealth.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

If foreign businesses purchase less of U.S. output, then there will be a decrease in gross exports. The other choices - an increase in foreign consumer income and an increase in foreign wealth - typically lead to an increase in demand for U.S. products, which would increase gross exports. Therefore, only choice B causes a decrease in gross exports.

Which of the Following Will Cause a Decrease in U