A rise in the U.S. price level will cause:
A)both exports and imports to increase.
B)both exports and imports to decrease.
C)exports to increase and imports to decrease.
D)exports to decrease and imports to increase.

Question

Quizplus · Accepted Answer

A rise in the U.S. price level makes U.S. goods more expensive to foreigners, reducing exports, and foreign goods relatively cheaper to U.S. consumers, increasing imports.

A Rise in the U