If prices increase in the United States only, then:
A) U.S. goods will become relatively more expensive than goods from other countries.
B) the cost of production will fall in other countries.
C) the prices of goods from other countries will rise.
D) the income level in the United States will rise.

Question

Quizplus · Accepted Answer

If prices increase in the United States only, then U.S. goods will become relatively more expensive than goods from other countries. This will make it harder for U.S. goods to compete in international markets and may result in a decrease in exports, which could negatively affect the U.S. economy.

If Prices Increase in the United States Only, Then