When U.S.real GDP increases, U.S.imports
A) decrease by the same amount.
B) increase by the same amount.
C) increase by less than the change in real GDP.
D) decrease by less than the change in real GDP.
E) increase by more than the change in real GDP.

Question

Quizplus · Accepted Answer

When U.S. real GDP increases, it typically leads to higher income and consumption, resulting in an increase in imports. However, the increase in imports is usually less than the increase in GDP because not all additional income is spent on foreign goods.

When U.S.real GDP Increases, U.S.imports