A decline in the U.S.price level,other things constant,would
A)stimulate U.S.exports,pushing the aggregate demand curve to the right
B)stimulate U.S.imports,pushing the aggregate demand curve to the right
C)stimulate U.S.exports but discourage imports,causing a rightward movement along a given aggregate demand curve
D)discourage U.S.exports but stimulate imports,causing a rightward movement along a given aggregate demand curve
E)not affect U.S.net exports,so aggregate quantity demanded would remain constant

Question

Quizplus · Accepted Answer

A decline in the U.S. price level makes U.S. goods cheaper for foreign buyers, stimulating exports, and makes foreign goods relatively more expensive for U.S. consumers, discouraging imports. This results in a rightward movement along the aggregate demand curve.

A Decline in the U.S.price Level,other Things Constant,would