The following list contains factors that are related to the aggregate demand curve.
1) Household expectations
2) Profit expectations
3) Degree of excess capacity
4) Personal income tax rates
5) Exchange rates
6) National income abroad
7) Government spending
8) Household wealth
-
Refer to the above information. A change in net export spending would most likely be caused by changes in:
A) 2 and 3.
B) 4 and 7.
C) 1 and 8.
D) 5 and 6.

Question

Quizplus · Accepted Answer

Changes in exchange rates (5) and national income abroad (6) directly affect net export spending, as they influence the competitiveness of domestic goods abroad and the purchasing power of foreign consumers.

The Following List Contains Factors That Are Related to the Aggregate