Which of the following observations will be valid,if major trading partners of the United States experience an economic slowdown?
A) an increase in U.S. exports to them
B) aggregate demand will not be affected
C) U.S. net exports will decrease
D) aggregate demand will shift to the right

Question

Quizplus · Accepted Answer

If major trading partners of the United States experience an economic slowdown, it means they will be purchasing fewer goods from the United States. This will cause a decrease in U.S. net exports, making choice C the correct observation. Choice A is incorrect because there will likely be a decrease in U.S. exports to those countries, not an increase. Choice B is incorrect because an economic slowdown in major trading partners will negatively impact the global economy, which will then affect aggregate demand. Choice D is incorrect because a decrease in U.S. net exports will actually shift aggregate demand to the left.

Which of the Following Observations Will Be Valid,if Major Trading