If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in the United States?
A)An increase in U.S.imports
B)An increase in U.S.exports
C)A decrease in U.S.imports
D)An increase in U.S.net exports

Question

Quizplus · Accepted Answer

With rapid inflation in the United States compared to stable prices in Mexico, goods and services from Mexico become relatively cheaper for U.S. consumers and businesses. This leads to an increase in U.S. imports from Mexico as consumers and businesses seek to take advantage of the lower prices.

If Mexico Experiences a Period of Stable Prices While the United