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According to the International Trade Effect, Holding Everything Else Unchanged

Question 18

Multiple Choice

According to the international trade effect, holding everything else unchanged,


A) an increase in net exports shifts the aggregate demand curve to the right.
B) an increase in the domestic price level reduces net exports leading to a movement along the aggregate demand curve.
C) an increase in the exchange rate shifts the aggregate demand curve to the right.
D) an increase in the price level of foreign goods reduces imports leading to a movement along the domestic economy's aggregate demand curve.

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