A decrease in foreign incomes
A) increases aggregate demand in the United States.
B) increases the aggregate quantity demanded in the United States.
C) decreases the aggregate quantity demanded in the United States.
D) decreases aggregate demand in the United States.

Question

Quizplus · Accepted Answer

A decrease in foreign incomes would lead to a decrease in aggregate demand in the United States because foreign buyers would have less income to spend on U.S. exports, reducing the overall demand for U.S. goods and services.

A Decrease in Foreign Incomes