When a change in the price level leads to a change in the quantity of net exports demanded,it is called the:
A) international trade effect.
B) export effect.
C) import effect.
D) net export effect.
E) interest rate effect.

Question

Quizplus · Accepted Answer

The international trade effect refers to the change in the quantity of net exports demanded as a result of a change in the price level, affecting the relative prices of domestic and foreign goods.

When a Change in the Price Level Leads to a Change