Other things equal, if a change in the tastes of American consumers causes them to purchase more foreign goods at each level of U.S.GDP, then
A)unemployment will decrease domestically.
B)U.S.real GDP will fall.
C)inflation will occur domestically.
D)U.S.real GDP will rise.

Question

Quizplus · Accepted Answer

When American consumers purchase more foreign goods, it leads to an increase in imports. This can result in a decrease in domestic production and demand for domestic goods, causing U.S. real GDP to fall.

Other Things Equal, If a Change in the Tastes of American