As a nation begins to export, its own relative price of
Exported goods will ______, and as it imports other
Goods, the relative price of those will ______, thus
___________ its standard of living.
A)fall; rise; lowering
B)rise; fall; lowering
C)rise; fall; raising
D)fall; rise; raising

Question

Quizplus · Accepted Answer

When a nation exports goods, their relative price rises due to increased demand. As it imports goods, the relative price of those goods falls due to increased supply, thus raising the standard of living by allowing access to cheaper imports and benefiting from higher export revenues.

As a Nation Begins to Export, Its Own Relative Price