An increase in incomes in other countries,other things equal,would cause U.S.
A)exports to decrease and imports to increase
B)exports to increase and imports to increase
C)imports to decrease and exports to decrease
D)imports to increase and exports would remain unchanged
E)imports to remain unchanged and exports to increase

Question

Quizplus · Accepted Answer

An increase in incomes in other countries would likely lead to an increase in demand for U.S. goods, thus increasing U.S. exports, while imports would remain unchanged as the scenario specifies "other things equal."

An Increase in Incomes in Other Countries,other Things Equal,would Cause