International trade and money flows can increase aggregate supply and aggregate demand if
A)Trade barriers are increased.
B)Trade barriers are reduced.
C)Tariffs are increased.
D)Quotas are increaseD.For example,if trade barriers are reduced,the increased imports allow aggregate supply to increase.Another example would be if money flows caused the value of the dollar to fall,then U.S.goods would be less expensive relative to foreign goods,which would increase aggregate demand.

Question

Quizplus · Accepted Answer

When trade barriers are reduced, the flow of international trade increases. This allows for more importing and exporting, leading to an increase in aggregate supply and demand. Additionally, reduced trade barriers mean access to a larger market, which can create economies of scale, leading to lower costs and increased production.

International Trade and Money Flows Can Increase Aggregate Supply and Aggregate