Suppose an Economy's Exports Increase and Its Imports Decrease

question 136

Multiple Choice

Suppose an economy's exports increase and its imports decrease. All other things unchanged, this results in

• A) a decrease in net exports which will shift the aggregate demand curve to the right.
• B) an increase in net exports which will shift the aggregate demand curve to the right.
• C) a decrease in net exports which will shift the aggregate supply curve to the left.
• D) an increase in net exports which will shift the aggregate supply curve to the right.

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Definitions:

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.

Monthly Payments

Regular payments made each month on a loan, mortgage, or other financial agreement.

Amortization Schedule

A table detailing each periodic payment on a loan over time, breaking down the amounts going towards principal and interest.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.