When the average price level in the United States,relative to the average price levels in other countries,rises,this tends to

Question

Quizplus · Accepted Answer

When the average price level in the United States rises relative to the average price levels in other countries, it means that U.S. goods and services have become more expensive compared to those of other countries. This will tend to raise imports (as cheaper foreign goods become more attractive to American consumers) and lower exports (as American goods become more expensive and therefore less competitive in foreign markets). Therefore, the correct answer is C.

When the Average Price Level in the United States,relative to the Average