A decrease in the U.S. price level will:
A)decrease U.S.imports.
B)decrease U.S.exports.
C)decrease the quantity of RGDP demanded in the United States.
D)both (a) and (c)

Question

A decrease in the U.S. price level will:
A)​decrease U.S.imports.
B)​decrease U.S.exports.
C)​decrease the quantity of RGDP demanded in the United States.
D)​both (a) and (c)

Quizplus · Accepted Answer

A decrease in the U.S. price level makes U.S. goods cheaper relative to foreign goods, which tends to decrease imports as domestic buyers prefer the now cheaper domestic goods over more expensive foreign goods.

A Decrease in the U.S. Price Level Will