When the price level in a foreign country rises faster than the U.S. price level, its products are _____ competitive than before, resulting in _____ sales.
A) more; higher
B) more; lower
C) less; lower
D) less; higher

Question

Quizplus · Accepted Answer

When the price level in a foreign country rises faster than in the U.S., its products become less competitive due to higher prices, leading to lower sales.

When the Price Level in a Foreign Country Rises Faster