According to the balance of payments schedule,as the level of income rises
A)import demand increases while export demand does not.
B)export demand increases while import demand decreases.
C)both import demand and export demand increase.
D)both import demand and export demand decrease.

Question

Quizplus · Accepted Answer

As the level of income rises, consumers and businesses typically have more money to spend, which often leads to an increase in the demand for imported goods and services. Export demand, however, is more directly influenced by the economic conditions in other countries rather than the domestic income level.

According to the Balance of Payments Schedule,as the Level of Income