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Suppose That the United States Signs a New Trade Treaty

Question 9

Multiple Choice

Suppose that the United States signs a new trade treaty that increases its exports to the rest of the world relative to imports. This policy will:


A) shift the aggregate demand curve to the right.
B) lead to a movement along the aggregate demand curve.
C) shift the aggregate demand curve to the left.
D) have no effect on the aggregate demand curve.

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