As the incomes in foreign nations rise, their imports from the United States will
A) fall as they become less dependent on other countries.
B) rise.
C) not be affected.
D) rise and the U.S. dollar exchange rate will fall.

Question

Quizplus · Accepted Answer

As incomes in foreign nations rise, their demand for goods and services typically increases. Since the United States is a major producer of many of the goods and services that are in demand globally, increasing incomes abroad often result in a corresponding increase in US exports. Therefore, imports from the United States will rise as incomes in foreign nations increase.

As the Incomes in Foreign Nations Rise, Their Imports from the United