An Increase in Imports Increases Aggregate Demand

question 159

True/False

An increase in imports increases aggregate demand.

Recognize the implications of government expenditures on capital goods for aggregate supply and demand.

Understand the effects of changes in taxes and government spending on aggregate demand.

Learn the principles behind the Theory of Liquidity Preference and how changes in the money supply affect interest rates and investment spending.

Acknowledge the role of net exports in influencing the quantity of domestic aggregate goods and services demanded.

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Definitions:

Cigarette Company

A business entity that manufactures, markets, and sells cigarettes and possibly other tobacco products.

Prices

The amounts of money expected, required, or given in payment for something.

Industry

The production of goods or services within an economy that are related by their primary business activities, sector, or domain.

Cutthroat Oligopolist

A situation in an oligopoly where companies compete aggressively, often with price cuts, to the detriment of their competitors.