Asked by Hanan Basheer on May 07, 2024
Verified
The amount of U.S.exports to the rest of the world is primarily determined by _____.
A) the real disposable income in the United States
B) the real disposable income in other nations
C) the real interest rate in other nations
D) the real interest rate in the United States
E) the government budget deficits in other nations
Real Disposable Income
The income of individuals or the nation after adjusting for inflation, representing the amount of money that households have available for spending and saving after income taxes have been accounted for.
U.S. Exports
Goods or services produced within the United States and sold to buyers in other countries, contributing to the country's economy.
- Analyze the effect of changes in income levels on imports and exports.
Verified Answer
VV
Vaughan van HeerdenMay 12, 2024
Final Answer :
B
Explanation :
The amount of U.S. exports is primarily determined by the real disposable income in other nations because when individuals in other countries have higher incomes, they have more money to spend on goods and services, including those produced in the United States. This increases demand for U.S. exports, leading to higher levels of exports.
Learning Objectives
- Analyze the effect of changes in income levels on imports and exports.