Other things equal, when Europeans want to buy more grain from the United States:
A)U.S.imports will increase.
B)European exports will increase at every level of domestic income.
C)U.S.exports will increase at every level of domestic income.
D)the U.S.balance of payments will show a deficit.
E)U.S.consumption spending will fall.

Question

Quizplus · Accepted Answer

When Europeans want to buy more grain from the United States, U.S. exports will increase at every level of domestic income. This is because the demand for U.S. grain from European buyers will increase, leading to an increase in U.S. exports. This will have a positive impact on the U.S. economy, as it will boost U.S. export revenue and help to narrow the country's trade deficit.

Other Things Equal, When Europeans Want to Buy More Grain