If exports and imports both rose, but exports rose less than imports,
A)AD would decrease.
B)AD would increase.
C)AD would be unaffected.
D)AD could either increase or decrease.

Name: If exports and imports both rose, but exports rose less than imports, A)AD would decrease. B)AD would increase. C)AD would be unaffected. D)AD could either increase or decrease.
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Question

If exports and imports both rose, but exports rose less than imports,
A)​AD would decrease.
B)​AD would increase.
C)​AD would be unaffected.
D)​AD could either increase or decrease.

Quizplus · Accepted Answer

If imports increase more than exports, net exports decrease, leading to a decrease in aggregate demand (AD).

If Exports and Imports Both Rose, but Exports Rose Less