If trade policies change, aggregate expenditure will likely:
A) increase.
B) decrease.
C) remain constant.
D) The effect on aggregate expenditure depends on the policy.

Question

Quizplus · Accepted Answer

The effect on aggregate expenditure would depend on the specific trade policy being implemented. Some policies may increase aggregate expenditure by promoting increased trade and investment, while others may decrease it by restricting or taxing trade. Therefore, we cannot make a definitive statement about the impact of trade policy changes on aggregate expenditure without knowing the details of the specific policy.

If Trade Policies Change, Aggregate Expenditure Will Likely