The foreign purchases effect on aggregate demand suggests that a:
A) Fall in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
B) Fall in our domestic price level will decrease our imports and increase our exports, thereby reducing the net exports component of aggregate demand
C) Rise in our domestic price level will increase our imports and reduce our exports, thereby reducing the net exports component of aggregate demand
D) Rise in our domestic price level will decrease our imports and increase our exports, thereby reducing the net exports component of aggregate demand
Correct Answer:
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Q2: The aggregate demand curve shows the:
A) Inverse
Q3: The aggregate demand curve or schedule shows
Q4: When the price level decreases:
A) The demand
Q5: In the aggregate demand-aggregate supply model, the
Q6: An increase in personal income tax rates
Q7: The real-balances effect on aggregate demand suggests
Q8: The labels for the axes of the
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