A change in imports caused by rising U.S. incomes is
A) an increase in autonomous expenditure.
B) a decrease in autonomous expenditure.
C) an increase in induced exports.
D) a change in induced expenditure.

Question

Quizplus · Accepted Answer

An increase in imports caused by rising U.S. incomes is considered a change in induced expenditure, as it is directly related to the level of income or output in the economy. Autonomous expenditures are not influenced by the economy's current level of income or output, whereas induced expenditures change when income or output levels change.

A Change in Imports Caused by Rising U