When the prices of U.S.- produced goods rise and the price of foreign- produced goods do not change, the result is
A) an increase in exports.
B) a decrease in imports.
C) no change in imports or exports.
D) a decrease in exports.

Question

Quizplus · Accepted Answer

When the prices of U.S.-produced goods rise and the price of foreign-produced goods do not change, the result is a decrease in exports. This is because consumers may opt to purchase the cheaper foreign-produced goods instead of the more expensive U.S.-produced goods, leading to a decrease in demand for American exports.

When the Prices of U