Everything else held constant,a shift in tastes in the U.S. toward Mexican goods will ________ net exports in the U.S. and cause the quantity of aggregate output demanded to ________ in Mexico.
A)decrease;rise
B)decrease;fall
C)increase;rise
D)increase;fall

Question

Quizplus · Accepted Answer

A shift in tastes in the U.S. toward Mexican goods will decrease net exports in the U.S. (as more is imported from Mexico) and cause the quantity of aggregate output demanded to rise in Mexico (as Mexican goods are in higher demand).

Everything Else Held Constant,a Shift in Tastes in the U