If Europe and Japan experience rapid growth in their incomes, other things constant, this will cause
A) a decrease in the exports of the United States.
B) an increase in the exports of the United States.
C) a decrease in the national income of the United States.
D) a decrease in aggregate demand in the United States.

Question

Quizplus · Accepted Answer

If Europe and Japan experience rapid growth in their incomes, they will have more purchasing power and will be able to buy more goods and services, including those produced in the United States. This will lead to an increase in the exports of the United States.

If Europe and Japan Experience Rapid Growth in Their Incomes