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The Foreign Trade Effect States That,ceteris Paribus

Question 35

Multiple Choice

The foreign trade effect states that,ceteris paribus:


A) The quantity demanded of domestic goods falls when the domestic price level falls.
B) The quantity demanded of imported goods falls when the price of imported goods falls.
C) Foreign consumers have more incentive to buy American-made products when U.S.prices rise.
D) The quantity demanded of domestic goods rises when the domestic price level falls.

Correct Answer:

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