An increase in the U.S. price level will:
A)increase U.S. exports.
B)increase U.S. imports.
C)increase the quantity of real GDP demanded in the United States.
D)increase the real value of the U.S. dollar.
E)encourage people to hold less money.

Question

Quizplus · Accepted Answer

An increase in the U.S. price level will make U.S. goods relatively more expensive compared to foreign goods, causing a decrease in U.S. exports and an increase in U.S. imports.

An Increase in the U.S. Price Level Will