Figure 36-8 ​

question 175

Multiple Choice

Figure 36-8
​
-Which of the graphs in Figure 36-8 illustrates the AD-AS shifts induced by the foreign sector following an increase in the U.S.federal deficit?

• A)1
• B)2
• C)3

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Definitions:

Credited

A bookkeeping record that augments liabilities or equity, or diminishes an asset or expense.

Assets

Assets are resources owned by a business or individual that have economic value and can be converted into cash or provide future benefits.

Decreased

A reduction in size, number, or amount of something from a previous level.

Credit

A financial agreement where a borrower receives something of value now and agrees to repay the lender at a future date.