At high domestic price levels compared to other countries, Americans
A) sell more exported goods.
B) buy more imported goods.
C) buy the same amount of foreign goods.
D) buy more American-made goods.

Question

Quizplus · Accepted Answer

When domestic prices are high compared to other countries, it is often cheaper for Americans to import goods from other countries where prices are lower. This leads to Americans buying more imported goods rather than buying more American-made goods or the same amount of foreign goods.

At High Domestic Price Levels Compared to Other Countries, Americans