Which of the following statements best describes the effect of declining national incomes abroad on US exports and aggregate demand?
Multiple choice question.
Declining national incomes encourage foreigners to purchase fewer U. S goods, net exports fall and US aggregate demand shifts leftward.
Declining national incomes encourage foreigners to purchase fewer U. S goods, net exports fall and US aggregate demand shifts rightward.
Declining national incomes encourage foreigners to purchase fewer U. S goods, net exports rise and US aggregate demand shifts leftward.
Declining national incomes encourage foreigners to purchase fewer U. S goods, net exports rise and US aggregate demand shifts rightward.
1 answer
The statement that best describes the effect of declining national incomes abroad on US exports and aggregate demand is:
Declining national incomes encourage foreigners to purchase fewer U.S. goods, net exports fall and US aggregate demand shifts leftward.
