In an economy like the United States, the impact of a decrease in import prices on overall inflation can be best described as:

Question

Quizplus · Accepted Answer

A decrease in import prices will lead to a decrease in the cost of production for companies as they have to pay less for raw materials and components. This, in turn, may lead to a decrease in the overall price of goods and services, as companies can afford to sell their products for less. As such, the impact of a decrease in import prices on overall inflation in the US would be a modest decrease.

In an Economy Like the United States, the Impact of a Decrease