One reason for an increase in aggregate demand (AD) on the net exports side is A a rise in the expected rate of return. B a rise in interest rates. C an increase in foreign demand. D an increase in the relative price of U.S. goods.

One reason for an increase in aggregate demand (AD) on the net exports side is A a rise in the expected rate of return. B a rise in interest rates. C an increase in foreign demand. D an increase in the relative price of U.S. goods.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 1DQ

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Question

One reason for an increase in aggregate demand (AD) on the net exports side is

A	a rise in the expected rate of return.
B	a rise in interest rates.
C	an increase in foreign demand.
D	an increase in the relative price of U.S. goods.

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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