If foreign income falls, we can expect to see all of the following, except:
A)a decrease in foreign spending.
B)a rise in domestic aggregate demand.
C)no change in either domestic net exports or aggregate demand.
D)a decrease in domestic net exports.
E)a decrease in domestic aggregate demand.

Question

Quizplus · Accepted Answer

A rise in domestic aggregate demand is not a result of a fall in foreign income.

If Foreign Income Falls, We Can Expect to See All