If net exports decline from zero to some negative amount,the aggregate expenditures schedule would:
A) shift upward.
B) shift downward.
C) not move (net exports do not affect aggregate expenditures).
D) become steeper.

Question

Quizplus · Accepted Answer

Net exports represent expenditures on domestically produced goods by foreign countries. When net exports decline from zero to negative, it means that there is a decrease in demand for domestic products from foreign countries. This decrease in demand leads to a decrease in aggregate expenditures, causing the aggregate expenditures schedule to shift downward.

If Net Exports Decline from Zero to Some Negative Amount,the