Which of the following statements represents a correct and sequentially accurate economic explanation?
A) Business taxes rise,investment falls,total expenditures on goods and services falls,AD rises,and the AD curve shifts rightward.
B) The dollar depreciates,net exports rise,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
C) The interest rate falls,consumption rises,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
D) b and c
E) a,b,and c

Question

Quizplus · Accepted Answer

B) When the dollar depreciates, foreign goods become more expensive relative to domestic goods, leading to an increase in net exports. This increase in net exports raises total expenditures on goods and services, causing aggregate demand (AD) to rise and the AD curve to shift rightward. C) A fall in the interest rate reduces the cost of borrowing, encouraging consumption and investment. This leads to an increase in total expenditures on goods and services, causing AD to rise and the AD curve to shift rightward. Both B and C accurately describe how economic mechanisms lead to changes in aggregate demand.

Which of the Following Statements Represents a Correct and Sequentially