A shift in tastes toward American goods ________ net exports in the U.S. and causes the quantity of aggregate output demanded to ________ in the U.S. ,everything else held constant.
A)decreases;rise
B)decreases;fall
C)increases;rise
D)increases;fall

Question

Quizplus · Accepted Answer

A shift in tastes toward American goods increases net exports in the U.S. because more foreign consumers are buying American products. This increase in demand for American goods causes the quantity of aggregate output demanded in the U.S. to rise, as more goods and services produced in the U.S. are being sold.

A Shift in Tastes Toward American Goods ________ Net Exports