If international trade continues to increase,
A) the domestic economy will become less vulnerable to foreign shocks.
B) the exchange rate sensitivity of exports will increase.
C) the domestic economy will become more vulnerable to foreign shocks.
D) the multiplier is likely to get larger.

Question

Quizplus · Accepted Answer

As international trade increases, the domestic economy becomes more interconnected with global markets, making it more susceptible to foreign economic shocks.

If International Trade Continues to Increase