Suppose That Foreigners Had Reduced Confidence in U

Multiple Choice

Suppose that foreigners had reduced confidence in U.S. financial institutions and believed that privately issued U.S. bonds were more likely to be defaulted on. U.S. net exports would

A) rise which by itself would increase aggregate demand.
B) rise which by itself would decrease aggregate demand.
C) fall which by itself would increase aggregate demand.
D) fall which by itself would decrease aggregate demand.