Relative to the rest of the world, inflation in the United States will cause which of the following?
A)Prices of U.S. goods will become relatively lower than prices of similar goods in other countries.
B)Foreign demand for U.S. goods will be less than without the inflation.
C)U.S. firms will get a larger share of the world markets.
D)The Fed will likely lower interest rates.

Question

Quizplus · Accepted Answer

Inflation in the United States makes U.S. goods more expensive relative to goods in other countries, reducing foreign demand for U.S. goods as they become less competitively priced.

Relative to the Rest of the World, Inflation in the United