When the price level is low and the demand for domestic goods increases, how doe

Question

When the price level is low and the demand for domestic goods increases, how does it affect international trade? A. Prices of all international goods will increase B. Prices of all international goods will decrease C. Net exports will increase D. Net exports will decrease When the price level is low and the demand for domestic goods increases, how does it affect international trade? A. Prices of all international goods will increase B. Prices of all international goods will decrease C. Net exports will increase D. Net exports will decrease A. Prices of all international goods will increase B. Prices of all international goods will decrease C. Net exports will increase D. Net exports will decrease

Explanation / Answer

it will be effected in net exports will decrease.

so, option D is correct.

because the demand increased and the price also at lower levels, so majority of the products will be sold in domestic market only.

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