Asked by Vanessa Recamadas on Apr 27, 2024
Verified
If incomes in the United States increase,other things equal,then U.S._____.
A) imports increase and exports remain constant
B) exports increase and imports decrease
C) imports decrease and exports decrease
D) imports remain constant and exports increase
E) net exports remains constant
Imports
Goods and services purchased from foreign producers by a country’s residents.
U.S. Income
This term describes the total national income earned by residents and businesses within the United States, comprising wages, rents, interest, and profits.
- Examine the impact of income level fluctuations on import and export activities.
Verified Answer
JH
Jatayaa HowellApr 30, 2024
Final Answer :
A
Explanation :
When incomes in the United States increase, consumers have more disposable income, which often leads to an increase in consumption, including the consumption of imported goods. Therefore, imports tend to increase. This choice does not necessarily imply that exports will remain constant, but among the given options, it most accurately reflects the direct impact of increased U.S. incomes on imports.
Learning Objectives
- Examine the impact of income level fluctuations on import and export activities.