Suppose Speculators Lost Confidence in Foreign Economies and Bought More

question 49

Essay

Suppose speculators lost confidence in foreign economies and bought more U.S. bonds. How would this affect net exports in the U.S., and which way would this cause the aggregate demand curve to shift?

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Definitions:

Productivity Norm

A standard or benchmark for the amount of work or output that should be achieved by a worker or group within a certain time frame.

Membership Characteristics

The traits and attributes that define the identity and inclusion criteria of a group or organization.

Culturally Diverse

Describes a group or setting that includes individuals from a wide range of ethnic, cultural, and social backgrounds.

Centralised Communication Network

Communication flows only between individual members and a hub or centre point.