An increase in the price level in the United States will reduce U.S.imports and increase U.S.exports.

Name: An increase in the price level in the United States will reduce U.S.imports and increase U.S.exports.
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Question

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An increase in the price level in the United States makes U.S. goods more expensive relative to foreign goods, potentially reducing U.S. exports because they become less competitive abroad. It may also increase U.S. imports as consumers and businesses look for cheaper foreign alternatives.

An Increase in the Price Level in the United States