If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in the United States?
A)an increase in U.S.imports
B)an increase in U.S.exports
C)a decrease in U.S.imports
D)an increase in U.S.net exports

Question

If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in the United States?
A)an increase in U.S.imports 
B)an increase in U.S.exports 
C)a decrease in U.S.imports 
D)an increase in U.S.net exports

Quizplus · Accepted Answer

When the United States experiences rapid inflation, domestic goods become more expensive relative to foreign goods, leading to an increase in imports as consumers and businesses seek cheaper alternatives from abroad.

If Mexico Experiences a Period of Stable Prices While the United