If the price level in the United States falls relative to the price level in foreign nations, U.S. exports:
A. increase and U.S. imports decrease, causing the demand for dollars to fall and the supply of dollars to rise.
B. decrease and U.S. imports decrease, causing the demand for dollars to rise and the supply of dollars to rise.
C. decrease and U.S. imports increase, causing the demand for dollars to fall and the supply of dollars to rise.
D. increase and U.S. imports decrease, causing the demand for dollars to rise and the supply of dollars to fall.
Answer: D
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