An increase in income in other countries,other things equal,would cause U.S._____.
A)exports to decrease and imports to increase
B)exports to increase and imports to increase
C)imports to decrease and exports to decrease
D)imports to increase and exports to remain unchanged
E)imports to remain unchanged and exports to increase

Question

Quizplus · Accepted Answer

An increase in income in other countries would likely lead to an increase in demand for goods, including those produced in the U.S., thus increasing U.S. exports. There is no direct reason given for U.S. imports to change based on the income changes in other countries, hence imports would remain unchanged.

An Increase in Income in Other Countries,other Things Equal,would Cause