24.1k views
0 votes
When the average price level in the united states, relative to the average price levels in other countries, rises, this tends to raise imports and lower exports?

1 Answer

4 votes
When the average price level rise in the USA relative the to the average price levels in other countries, American products become more expensive for those countries. Hence, there will a fall in imports level. On the other hand, countries with Lowe prices should experience a rise in the price exports because their products are more price-competitive.
User Xylar
by
7.8k points