What would be the impact on aggregate demand (AD)if exports fell and imports rose?
A)AD would increase.
B)AD would decrease.
C)AD could either increase or decrease.
D)AD would be unaffected.

Question

Quizplus · Accepted Answer

A fall in exports and a rise in imports will result in a decrease in net exports (exports - imports), which is a component of AD. As a result, AD would decrease.

What Would Be the Impact on Aggregate Demand (AD)if Exports