Using the standard 45° line diagram, how does a decrease in net exports effect the expenditure schedule?

Name: Using the standard 45° line diagram, how does a decrease in net exports effect the expenditure schedule?
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Question

Quizplus · Accepted Answer

A decrease in net exports means that there is a decrease in the amount of spending from foreign countries, resulting in a decrease in overall spending in the economy. This will shift the expenditure schedule downward, as there will be less spending at every level of income.

Using the Standard 45° Line Diagram, How Does a Decrease