Which of the Following Is an Example of the Foreign

Multiple Choice

Which of the following is an example of the foreign trade effect,assuming the U.S.price level decreases?

A) The purchasing power of money decreases and people buy fewer goods.
B) U.S.goods are less expensive for Americans so they buy fewer imports and more domestic goods.
C) U.S.production costs stay constant and profits for businesses increase.
D) The demand for loans decreases so interest rates decline and loan-financed purchases increase.