Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?
A)an increase in U.S. exports to them
B)aggregate demand will not be affected
C)U.S. net exports will fall
D)aggregate demand will shift to the right

Question

Quizplus · Accepted Answer

If major trading partners of the United States experience an economic slowdown, then the demand for U.S. exports from those countries will decrease, resulting in a fall in U.S. net exports. Option A would be incorrect because a slowdown in a country's major trading partners would result in decreased demand for its exports. Option B is incorrect because a decrease in net exports would decrease aggregate demand. Option D is incorrect as it implies that the economic slowdown in the trading partner countries would somehow increase aggregate demand in the U.S., which is unlikely.

Which of the Following Observations Will Be Valid, If Major