Changes in Aggregate Demand

question 9

Multiple Choice

Changes in aggregate demand

• A)could be caused by changes in the spending decisions of foreigners.
• B)are unlikely to change quickly in response to economic events.
• C)are primarily based on changes in firms' abilities to produce products.
• D)are not affected by changes in government policies.

---

Definitions:

Net Capital Outflow

The net flow of funds used for investment in foreign countries minus the flow of funds from foreign investments into the domestic market.

Domestic Investment

Financial investments within a country's borders, including infrastructure, buildings, and machinery, contributing to national economic growth.

Foreign-Currency Exchange

The exchange of currencies from various countries against one another.

Net Exports

The value of a country's total exports minus its total imports, representing the net spending on domestic goods and services by the rest of the world.