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NYC NYC
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8 years ago
When the prices of a country's imports decrease, the prices of domestic goods may decrease. This occurs because:
A) if import prices fall relative to domestic prices, households will tend to substitute imports for domestically produced goods and services.
B) a decrease in the prices of imported inputs will cause aggregate demand to increase.
C) a decrease in the prices of imported inputs will cause aggregate supply to decrease.
D) if import prices fall relative to domestic prices, households will tend to substitute domestically produced goods and services for imports.
Textbook 
Principles of Macroeconomics

Principles of Macroeconomics


Edition: 11th
Authors:
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JesslynJesslyn
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NYC Author
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8 years ago
Perfect answer, thank you
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