Suppose the U

question 196

Multiple Choice

Suppose the U.S. is a major importer of Japanese automobiles. All other things unchanged, a
Decrease in subsidies granted by the Japanese governments to its auto manufacturers will

• A) increase U.S. net exports and shift the aggregate demand curve to the right.
• B) decrease U.S. net exports and shift the aggregate demand curve to the right.
• C) increase U.S. net exports and shift the short-run aggregate supply curve to the left.
• D) decrease U.S. net exports and shift the short-run aggregate supply curve to the left.

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Definitions:

Policies

Guidelines or rules established by organizations or governments to direct actions and decisions in specific areas.

Personal Assets

Items of value owned by an individual, including tangible assets like property and cars, and intangible assets like stocks and bonds.

Savings Account

is a deposit bank account that earns interest, designed for individuals to save money over time.

Investment Account

A financial account that holds securities, such as stocks, bonds, or mutual funds, for investment purposes.