When the price level falls the quantity of
A)consumption goods demanded rises,while the quantity of net exports demanded falls.
B)consumption goods demanded and the quantity of net exports demanded both rise.
C)consumption goods demanded and the quantity of net exports demanded both fall.
D)consumption goods demanded falls,while the quantity of net exports demand rises.

Question

Quizplus · Accepted Answer

When the price level falls, consumers can buy more goods and services with the same amount of money, leading to an increase in the quantity of consumption goods demanded. Additionally, domestic goods become cheaper relative to foreign goods, increasing the quantity of net exports demanded.

When the Price Level Falls the Quantity of