As the U.S.price level decreases,expenditures by which of the following will remain unaffected?
A)Consumers
B)Businesses
C)The rest of the world
D)All of these are true.

Question

Quizplus · Accepted Answer

As the U.S. price level decreases, the real value of foreign currencies will increase, making U.S. goods and services more expensive for foreigners. This will lead to a decrease in exports and an increase in imports, which will have a negative impact on businesses. Consumers will also be affected, as they will have to pay more for imported goods and services. However, the rest of the world will not be affected, as the U.S. price level has no direct impact on their economies.

As the USPrice Level Decreases,expenditures by Which of the Following Will Remain