When U.S. real GDP increases, U.S. imports
A)increase by more than the change in real GDP.
B)decrease by less than the change in real GDP.
C)increase by less than the change in real GDP.
D)decrease by the same amount.
E)increase by the same amount.

Question

Quizplus · Accepted Answer

When U.S. real GDP increases, consumers and businesses have more income and resources to spend, leading to an increase in imports. However, the increase in imports is typically less than the change in real GDP because not all additional income is spent on foreign goods and services.

When U.S. Real GDP Increases, U.S. Imports