Which of the following will cause a decrease in U.S.gross exports?
A)An increase in foreign consumer income.
B)A decrease in foreign business purchases of U.S.output.
C)An increase in foreign wealth.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

A decrease in foreign business purchases of U.S. output will directly cause a decrease in U.S. gross exports as there will be less demand for U.S. goods and services from foreign businesses. An increase in foreign consumer income and foreign wealth may actually increase U.S. gross exports as there may be more demand for U.S. goods and services from foreign consumers. Therefore, options A and C can be eliminated. Option D is incorrect as there is a correct answer.

Which of the Following Will Cause a Decrease in U