Everything Else Remaining the Same, an Increase in Foreign Income

question 81

Multiple Choice

Everything else remaining the same, an increase in foreign income

• A)increases Canada's aggregate supply.
• B)increases Canada's aggregate demand.
• C)decreases Canada's aggregate demand.
• D)creates a movement downward along Canada's aggregate demand curve.
• E)decreases Canada's aggregate supply.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to the typical demand pattern.

Complementary Goods

Products or services that are used together, where an increase in demand for one leads to an increase in demand for the other.

Substitute Goods

Products or services that can be used in place of each other by consumers.