Ceteris Paribus,if Average Prices in the U

Multiple Choice

Ceteris paribus,if average prices in the U.S.economy fall,then the

A) Real balances effect will lead to a lower quantity of U.S.output demanded.
B) Foreign trade effect will lead to a higher quantity of U.S.output demanded.
C) Interest rate effect will lead to a lower quantity of U.S.output demanded.
D) Profit effect will lead to a higher quantity of U.S.output demandeD.As the domestic price level falls,consumers (domestic and international) will buy more U.S.-made products and exports will rise.In essence,exports will rise,and imports will fall.