What Impact Does a Decrease in the Price Level in the United

Multiple Choice

What impact does a decrease in the price level in the United States have on net exports and why?

A) A decrease in the U.S.price level increases net exports because lower prices increase the value of the dollar.
B) A decrease in the U.S.price level increases net exports by reducing the relative cost of American goods.
C) A decrease in the U.S.price level reduces net exports because lower prices raise the value of the dollar.
D) A decrease in the U.S.price level reduces net exports because lower prices increase American spending on imports.