If Net Exports Decrease from Zero to Some Negative Amount

question 151

Multiple Choice

If net exports decrease from zero to some negative amount, the aggregate expenditures schedule would:

• A)shift upward.
• B)shift downward.
• C)not move (net exports do not affect aggregate expenditures).
• D)shift upward or downward, depending on whether the negative net exports resulted from a decline in exports or an increase in imports.

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Definitions:

Solutes

Substances dissolved in a liquid (solvent) to form a solution, such as salts in water.

Solvents

Substances, typically liquids, that can dissolve other substances to form a solution.

Catalysts

Substances that speed up chemical reactions without being consumed in the process.

pH Value

A measure of the acidity or alkalinity of a solution, with 7 being neutral.