Consumer preference for foreign goods and services generally has a _______ relationship with aggregate expenditure.
A) negative
B) positive
C) skewed
D) constant

Question

Quizplus · Accepted Answer

If consumers prefer foreign goods and services, they may decrease their spending on domestic goods and services, which would lead to a decrease in aggregate expenditure. Therefore, there is a negative relationship between consumer preference for foreign goods and services and aggregate expenditure.

Consumer Preference for Foreign Goods and Services Generally Has a _______