According to the foreign trade effect,when the U.S.price level decreases,U.S.consumers are likely to buy:
A) More American-made products.
B) Different American-made products.
C) More foreign-made products.
D) Less of all products,both American made and foreign made.

Question

Quizplus · Accepted Answer

When the U.S. price level decreases, American-made products become relatively cheaper compared to foreign-made products. This makes U.S. consumers more likely to buy American-made products due to their lower prices compared to the alternatives.

According to the Foreign Trade Effect,when the U