The Foreign Purchases Effect Suggests That a Decrease in the U.S

question 317

Multiple Choice

The foreign purchases effect suggests that a decrease in the U.S. price level relative to other countries will

• A) shift the aggregate demand curve leftward.
• B) shift the aggregate supply curve leftward.
• C) decrease U.S. exports and increase U.S. imports.
• D) increase U.S. exports and decrease U.S. imports.

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