Suppose Speculators Lost Confidence in Foreign Economies and Bought More

question 49

Essay

Suppose speculators lost confidence in foreign economies and bought more U.S. bonds. How would this affect net exports in the U.S., and which way would this cause the aggregate demand curve to shift?

---

Definitions:

Right to Vote

The legal privilege given to eligible citizens to participate in the election of government officials.

Appraisal Rights

Legal rights that allow shareholders to have their shares appraised and receive compensation in the event of an unfavorable corporate action.

Dissenting Shareholders

Shareholders who disagree with a major corporate decision, such as a merger or acquisition, and are often entitled to certain rights, like selling their shares back to the company at a fair value.

Legal Status

The classification of an individual's or entity's standing under the law, which can affect rights, responsibilities, and jurisdiction.