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

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

Quizplus · Accepted Answer

If exports fall less than imports, the net exports (exports minus imports) would increase, leading to a rise in aggregate demand (AD).

If Exports and Imports Both Fell, but Exports Fell Less