Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?
A)There will be an increase in U.S.exports to them
B)U.S.aggregate demand will not be affected
C)U.S.net exports will decrease
D)aggregate demand will shift to the right

Question

Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?
A)​There will be an increase in U.S.exports to them
B)​U.S.aggregate demand will not be affected
C)​U.S.net exports will decrease
D)​aggregate demand will shift to the right

Quizplus · Accepted Answer

If major trading partners of the United States experience an economic slowdown, their demand for U.S. exports will decrease, resulting in a decrease in U.S. net exports. Therefore, option C is the correct answer. Option A is incorrect because there will be a decrease in U.S. exports. Option B is incorrect because U.S. aggregate demand will be affected by the decrease in demand for U.S. exports. Option D is also incorrect because a decrease in net exports will cause a leftward shift in aggregate demand.

Which of the Following Observations Will Be Valid, If Major