Multiple Choice
Which of the following best describes how the international trade effect works?
A) The price level in the U.S.falls relative to foreign price levels,U.S.goods become relatively less expensive than foreign goods,and both Americans and foreigners buy more U.S.goods.
B) The price level in the U.S.falls relative to foreign price levels,U.S.goods become relatively more expensive than foreign goods,and both Americans and foreigners buy more U.S.goods.
C) The price level in the U.S.rises relative to foreign price levels,U.S.goods become relatively more expensive than foreign goods,and both Americans and foreigners buy fewer U.S.goods.
D) The price level in the U.S.rises relative to foreign price levels,U.S.goods become relatively more expensive than foreign goods,and both Americans and foreigners buy more U.S.goods.
E) a and c
Correct Answer:

Verified
Correct Answer:
Verified
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