Other things equal, a recession in Mexico would cause U.S. exports to Mexico to increase and U.S. aggregate demand to increase.

Name: Other things equal, a recession in Mexico would cause U.S. exports to Mexico to increase and U.S. aggregate demand to increase.
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Question

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A recession in Mexico would likely lead to a decrease in demand for U.S. exports, as Mexican consumers would have less purchasing power. This would cause a decrease in U.S. exports to Mexico and therefore a decrease in U.S. aggregate demand.

Other Things Equal, a Recession in Mexico Would Cause U