If exports were to fall and imports to rise,leading to an decrease in quantity demanded of aggregate output,we would expect as a result,
A)A decrease in the price level
B)A fall in the price level.
C)the open economy effect to lessen.
D)No change in the price level.

Question

Quizplus · Accepted Answer

A decrease in exports and an increase in imports would lead to a decrease in aggregate demand, which would in turn lead to a decrease in the price level.

If Exports Were to Fall and Imports to Rise,leading to an Decrease