A(n) _____ in government spending, a _____ domestic currency, and _____ interest rates will shift a country's aggregate demand to the left.

Question

Quizplus · Accepted Answer

A decrease in government spending reduces overall demand in the economy. A stronger domestic currency makes exports more expensive and imports cheaper, reducing net exports. Higher interest rates discourage borrowing and spending, further reducing aggregate demand.

A(n) _____ in Government Spending, a _____ Domestic Currency, and _____

A(n) ___ in Government Spending, a _ Domestic Currency, and ___