When spending and incomes in an economy increase,
A)imports are likely to increase.
B)imports are likely to be unchanged.
C)imports are likely to decrease.
D)exports are likely to decrease.

Question

Quizplus · Accepted Answer

When spending and incomes increase, consumers typically have more disposable income and may choose to spend it on imports, leading to an increase in imports. Additionally, higher incomes may make imports more affordable, further increasing demand for imports.

When Spending and Incomes in an Economy Increase