When national income in other nations decreases, aggregate:
A) demand increases.
B) demand decreases.
C) supply increases.
D) supply decreases.

Question

Quizplus · Accepted Answer

When national income in other nations decreases, they have less money to spend on imports, including goods and services from other countries. This leads to a decrease in aggregate demand for the exporting country's goods and services.

When National Income in Other Nations Decreases, Aggregate