Answered

At high domestic price levels compared to other countries, Americans:
a) buy more imported goods.
b) sell more exports.
c) buy the same amount of foreign goods.
d) try to buy American.



Answer :

GinnyAnswer

Final answer:

The foreign price effect states that higher domestic prices relative to foreign prices lead to expensive exports and cheaper imports.


Explanation:

The foreign price effect explains that when prices rise in the United States compared to other countries, U.S. goods become relatively more expensive globally. As a result, U.S. exports become pricier, leading to a decrease in the quantity of exports sold. Conversely, U.S. imports become relatively cheaper, causing an increase in the quantity of imports purchased.


Learn more about Effects of domestic price levels on exports and imports here:

https://brainly.com/question/29582160


Other Questions