If exports fell and imports rose,
A)AD would fall.
B)AD would rise.
C)AD would be unaffected.
D)AD could either increase or decrease.

Name: If exports fell and imports rose, A)AD would fall. B)AD would rise. C)AD would be unaffected. D)AD could either increase or decrease.
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Question

Quizplus · Accepted Answer

When exports fall and imports rise, there is a decrease in net exports. This means there is a decrease in the demand for a country's goods and services, causing a fall in AD.

If Exports Fell and Imports Rose