Figure 30-2
-Refer to Figure 30-2. Which of the following would cause the change depicted in the figure above?
A) An increase in investment in infrastructure causes U.S. productivity to rise relative to Mexican productivity.
B) A growing preference for Margaritas causes U.S. consumers to increase their preferences for Mexican tequila relative to American-produced alcohol.
C) Dumping accusations result in the United States placing tariffs on produce imported from Mexico.
D) A contractionary monetary policy causes a decrease in the price level of U.S. goods relative to Mexican goods.
Correct Answer:
Verified
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