Suppose that foreigners had increased confidence in U.S. financial institutions and believed that privately issued U.S. bonds were less likely to be defaulted on U.S. net exports would fall which by itself would decrease aggregate demand. fall which by itself would increase aggregate demand. rise which by itself would increase aggregate demand. O rise which by itself would decrease aggregate demand.
Suppose that foreigners had increased confidence in U.S. financial institutions and believed that privately issued U.S. bonds were less likely to be defaulted on U.S. net exports would fall which by itself would decrease aggregate demand. fall which by itself would increase aggregate demand. rise which by itself would increase aggregate demand. O rise which by itself would decrease aggregate demand.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: Fiscal Policy, Incentives, And Secondary Effects
Section: Chapter Questions
Problem 8CQ
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