An increase in foreign real income would shift the:

A) aggregate demand curve rightward.
B) aggregate demand curve leftward.
C) aggregate supply curve rightward.
D) aggregate supply curve leftward.

A

Economics

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What is the crowding-out effect and how does it operate? What is its relationship to the Ricardo-Barro effect?

What will be an ideal response?

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Looking at historical evidence for the United States and other countries, which of the following are TRUE?

I. There is a correlation between the growth rate of the quantity theory of money and the growth rate of real GDP. II. There is a correlation between the growth rate of the quantity theory of money and the inflation rate. A) Only I is true. B) Only II is true. C) Both I and II are true. D) Neither I or II is true.

Economics