Suppose exports increase. According to the shares of spending model from Chapter 7, what would happen to interest rates, consumption, investment, and net exports in the long run? According to this chapter's model, which is made up of the aggregate demand curves and the inflation adjustment line, what will happen to interest rates, consumption, investment, and net exports in the long run?

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The Answer of Suppose exports increase. According to the shares of spending model from Chapter 7, what would happen to interest rates, consumption, investment, and net exports in the long run? According to this chapter's model, which is made up of the aggregate demand curves and the inflation adjustment line, what will happen to interest rates, consumption, investment, and net exports in the long run?

Suppose Exports Increase