A fall in a foreign country's income will most likely cause:
A. an increase in U.S. exports, so the U.S. aggregate demand curve shifts left.
B. a reduction in U.S. exports, so the U.S. aggregate demand curve shifts right.
C. a reduction in U.S. exports, so the U.S. aggregate demand curve shifts left.
D. an increase in U.S. exports, so the U.S. aggregate demand curve shifts right.
Answer: C
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Which of the following statements regarding the production possibilities frontier is TRUE?
A) Points outside the frontier are attainable. B) Points inside the frontier are attainable. C) Points on the frontier are less efficient than points inside the frontier. D) None of the above because all of the above statements are false.
In 2005 and 2006, because of fears of inflation, the Fed:
a. increased interest rates which lead to higher monthly payments on fixed rate mortgages b. increased interest rates which lead to higher monthly payments on adjustable rate mortgages. c. decreased interest rates which lead to higher monthly payments on fixed rate mortgages. d. decreased interest rates which lead to higher monthly payments on adjustable rate mortgages.