When the prices of U.S.-produced goods rise and the price of foreign-produced goods do not change, the result is
A) an increase in exports.
B) a decrease in exports.
C) a decrease in imports.
D) no change in imports or exports.

Question

Quizplus · Accepted Answer

When the prices of U.S.-produced goods rise relative to foreign-produced goods, U.S. goods become more expensive for both U.S. consumers and foreign buyers. This typically leads to a decrease in exports because foreign buyers can find cheaper alternatives elsewhere.

When the Prices of U