The Foreign Trade Effect

question 41

Multiple Choice

The foreign trade effect:

• A) shifts the aggregate demand curve rightward.
• B) shifts the aggregate demand curve leftward.
• C) shifts the aggregate supply curve rightward.
• D) does none of the above.

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Definitions:

Manipulates Factors

To control or alter variables or components in an experimental setting to determine their effects on an outcome.

Experiment

A method of testing hypotheses by observing the outcomes of controlled conditions.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the relationship but not causation between them.

Causation

The relationship between cause and effect, where one event or action directly results in another.