A decrease in U.S. prices relative to European prices
A) will decrease European exports to the United States.
B) will increase U.S. imports from Europe.
C) will decrease U.S. exports to Europe.
D) will not affect U.S. trade with Europe.

Question

Quizplus · Accepted Answer

A decrease in U.S. prices relative to European prices makes U.S. goods cheaper for Europeans, leading to an increase in U.S. exports to Europe and a decrease in European exports to the U.S.

A Decrease in U