An Increase in Net Exports, All Other Things Unchanged

question 119

Multiple Choice

An increase in net exports, all other things unchanged

• A) results in a movement downward along the aggregate demand curve.
• B) increases aggregate demand.
• C) increases aggregate supply.
• D) does not change aggregate demand or aggregate supply in the domestic economy.

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Definitions:

Loanable Funds

Funds available for borrowing, which consist of household savings and international capital flows.

Compounded Annually

Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Withdrawals

Money or resources taken out from a system, economy, or savings for various purposes, reducing the total available amount.