Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP in the short run:
A) GDP will rise
B) GDP will fall
C) Foreign countries' GDP will rise
D) There will be no change in GDP in this country

Question

Quizplus · Accepted Answer

If domestic consumers purchase fewer foreign goods, domestic spending on domestic goods increases, leading to a rise in GDP in the short run.

Other Things Constant, If Domestic Consumers Purchase Fewer Foreign Goods