Suppose the U

Multiple Choice

Suppose the U.S. is a major importer of Japanese automobiles. All other things unchanged, a
Decrease in subsidies granted by the Japanese governments to its auto manufacturers will

A) increase U.S. net exports and shift the aggregate demand curve to the right.
B) decrease U.S. net exports and shift the aggregate demand curve to the right.
C) increase U.S. net exports and shift the short-run aggregate supply curve to the left.
D) decrease U.S. net exports and shift the short-run aggregate supply curve to the left.