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Which of the following is the BEST description of the Foreign Purchases (aka Net Export) Effect?
Foreigners move more money to the United States due to lower than expected returns in their home country.
Foreigners demand more US goods and services when US price level increases.
Foreigners demand more US goods and services when US price level decreases.
Tourists are more likely to come and spend money in a country with increasing price levels.
Americans demand fewer foreign goods and services when U.S. price level falls.