U.S. exports tend to increase when

Question

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When U.S. prices are falling compared to those in the rest of the world, it makes U.S. exports more competitive in the global market, which tends to increase U.S. exports. Option A and B are incorrect because decreasing economic activity and falling foreign GDPs indicate weaker international demand for U.S. exports. Option D is incorrect because a strong U.S. dollar makes U.S. exports more expensive for foreign buyers, which tends to decrease U.S. exports.

U.S. Exports Tend to Increase When