If young business professionals in America suddenly decide that driving German-made cars is an important status symbol,net exports will tend to ________ causing aggregate demand to ________,everything else held constant.

Question

Quizplus · Accepted Answer

If young business professionals in America increase their demand for German-made cars, imports will rise, leading to a fall in net exports (exports minus imports). This decrease in net exports will cause aggregate demand to fall, assuming all other factors remain constant.

If Young Business Professionals in America Suddenly Decide That Driving