If Europe and Japan experience rapid growth in their incomes,other things constant,this will cause a(n)
A)decrease in the exports of the United States.
B)increase in the exports of the United States.
C)decrease in the national income of the United States.
D)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 higher demand for goods and services. This will lead to an increase in the exports of the United States as they will be able to supply these goods and services. Therefore, other things constant, there will be an increase in the exports of the United States.

If Europe and Japan Experience Rapid Growth in Their Incomes,other