An increase in foreign incomes
A) increases the aggregate quantity demanded in the United States.
B) increases aggregate demand in the United States.
C) decreases aggregate demand in the United States.
D) decreases the aggregate quantity demanded in the United States.

Question

Quizplus · Accepted Answer

An increase in foreign incomes would lead to an increase in exports from the US, which would increase demand for goods and services produced in the US, thereby increasing aggregate demand in the United States.

An Increase in Foreign Incomes