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Macroeconomics Questions:

An open economy effect suggests that a. a decrease in domestic price…

Complete Question Text:

An open economy effect suggests that

a. a decrease in domestic price level will cause foreign residents to buy fewer U.S. made goods, increasing net exports .

b. a rise in U.S. price level will cause foreign residents to buy more U.S. goods.

c. a rise in U.S. price level will cause U.S. residents to buy fewer imported goods.

d. a decrease in domestic price level will cause foreign residents to buy more U.S. made goods, decreasing net exports.

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