Question

When the price level in the united states falls relative to the price level of other​ countries, ________ will​ fall, ________ will​ rise, and​ ________ will rise.

a. net​ exports; imports; exports
b. ​imports; exports; net exports
c. ​exports; imports; net exports
d. net​ exports; exports; imports?

Answer 1

The answer is b.When the price level in the United States falls relative to the price level of other countries, imports will fall, exports will rise and net exports will rise.In this case, the net exports will be computed as the Country's aggregate total exports minus the aggregate value of the total imports.