U.S.net export spending rises when
A)the price level in the United States rises relative to the price level in other countries.
B)the growth rate of U.S.GDP is slower than the growth rate of GDP in other countries.
C)the value of the U.S.dollar increases relative to other currencies.
D)the inflation rate is higher in the United States relative to other countries.

Question

Quizplus · Accepted Answer

When the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries, U.S. goods and services become relatively cheaper, leading to an increase in demand from foreign countries. This results in a rise in U.S. net export spending.

U.S.net Export Spending Rises When