The AD curve will shift to the right if:
A) people become pessimistic about the future of the economy.
B) there is a decrease in foreign income.
C) the government decreases spending.
D) the domestic price level decreases.
E) the foreign price level increases.

Question

Quizplus · Accepted Answer

An increase in the foreign price level makes domestic goods relatively cheaper, boosting exports and shifting the AD curve to the right.

The AD Curve Will Shift to the Right If