In an open economy, the real level of U.S. exports and the quantity of RGDP demanded ______ the price level.
A)Move in the same direction as
B)Move in the opposite direction from
C)Are not affected by
D)Have an indeterminate relationship with

Question

In an open economy, the real level of U.S. exports and the quantity of RGDP demanded ______ the price level.
A)​Move in the same direction as
B)​Move in the opposite direction from
C)​Are not affected by
D)​Have an indeterminate relationship with

Quizplus · Accepted Answer

In an open economy, the real level of U.S. exports and the quantity of RGDP demanded move in the opposite direction from the price level because as the price level increases, exports become more expensive to foreign buyers, reducing the quantity of exports and the overall quantity of RGDP demanded.

In an Open Economy, the Real Level of U