Ceteris paribus, a decrease in the U.S. price level will cause
A) an increase in U.S. exports.
B) an increase in U.S. imports.
C) the aggregate demand curve to shift to the right.
D) the aggregate demand curve to shift to the left.

Question

Quizplus · Accepted Answer

A decrease in the U.S. price level will make U.S. goods cheaper relative to foreign goods. This makes U.S. goods more competitive on the international market, which will lead to an increase in U.S. exports.

Ceteris Paribus, a Decrease in the U