With a fixed exchange rate, an increase in the domestic price level wi

With a fixed exchange rate, an increase in the domestic price level will, for a constant foreign price level,

a. increase exports and decrease imports.
b. make foreign goods relatively more expensive to U.S. citizens but U.S. exports will be relatively cheaper to foreigner buyers.
c. increase both exports and imports.
d. make foreign goods relatively cheaper to U.S. citizens but U.S. exports will be more expensive to foreign purchasers.

ANSWER

D