U.S.net export spending falls when
A)the price level in the United States falls relative to the price level in other countries.
B)the growth rate of U.S.GDP is faster than the growth rate of GDP in other countries.
C)the value of the U.S.dollar decreases relative to other currencies.
D)the inflation rate is lower in the United States relative to other countries.

Question

Quizplus · Accepted Answer

When the growth rate of U.S. GDP is faster than the growth rate of GDP in other countries, Americans are likely to buy more foreign goods and services, increasing imports while exports remain relatively unchanged, thus reducing net export spending.

U.S.net Export Spending Falls When