Which of the following will decrease aggregate demand?
A)exports rising faster than imports
B)exports falling faster than imports
C)exports rising the same amount as imports
D)exports rising and imports falling

Question

Which of the following will decrease aggregate demand?
A)​exports rising faster than imports
B)​exports falling faster than imports
C)​exports rising the same amount as imports
D)​exports rising and imports falling

Quizplus · Accepted Answer

If exports fall faster than imports, it means that there is a larger outflow of money from the domestic economy. This, in turn, reduces the available income and thus decreases the aggregate demand.

Which of the Following Will Decrease Aggregate Demand