A rise in the U.S.price level brings a ________ in the price of U.S.exports relative to imports that ________ exports of U.S.goods, bringing a ________ in the quantity of U.S.real GDP demanded.
A) rise; decreases; decrease
B) fall; decreases; decrease
C) fall; increases; increase
D) rise; increases; increase
E) rise; increases; decrease

Question

Quizplus · Accepted Answer

A rise in the U.S. price level makes U.S. goods more expensive relative to foreign goods, decreasing exports and leading to a decrease in the quantity of U.S. real GDP demanded.

A Rise in the U