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Which of the following is the BEST description of the Foreign Purchases (aka Net Export) Effect?

A

Foreigners move more money to the United States due to lower than expected returns in their home country.

B

Foreigners demand more US goods and services when US price level increases.

C

Foreigners demand more US goods and services when US price level decreases.

D

Tourists are more likely to come and spend money in a country with increasing price levels.

E

Americans demand fewer foreign goods and services when U.S. price level falls.

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