When the price level in the United States falls relative to the price level in other countries, ceteris paribus, what does the foreign demand effect say will happen?
U.S. exports will decrease and U.S. imports will increase.
U.S. exports and U.S. imports will both decrease.
U.S. exports will increase and U.S. imports will decrease.
U.S. exports and U.S. imports will both increase.
