Would the effect on aggregate demand be larger if the FederalDefine net exports. Get started Net exports might be a negative amount if Americans decrease their holdings of foreign currencies, borrow from foreigners, or do a bit of both 24. Specify how your explanation differs from the explanation for the downsloping demand curve for a single product. Would an increase in net exports affect the monetary policy curve? International trade is the exchange of goods and services among countries. Suppose foreigners spend $\$ 7$ billion on U.S. exports in a specific year and Americans spend $\$ 5$ billion on imports from abroad in the same year.
Enroll in one of our FREE online STEM summer camps.
What is the amount of the United States' net exports? Chapter 21 What is the amount of the United States’ net exports?
Explain your answer.Assume the monetary policy curve is given by $r=1.5+0.75 \pi$Need more help? What will happen to the position of the aggregate demand curve? What role does the multiplier play in shifts of the aggregate demand curve? Explain how U.S. exports and imports each affect domestic production. Space is limited so join now!Why does the aggregate demand curve shift when "animal spirits" change?If government spending increases while taxes are raised to keep the budget balanced, what happens to the aggregate demand curve?Suppose that government spending is increased at the same time that an autonomous monetary policy tightening occurs. Explain how net exports might be a negative amount.
Relevance.
Suppose foreigners spend $7 billion on U.S. exports in a specific year and Americans spend $5 billion?
Briefly explain.If real GDP in the United States declined by more during the $2007-2009$ recession than did real GDP in Canada, China, and other trading partners of the United States, would the effect be to increase or decrease U.S. net exports? Suppose foreigners spend $\$ 7$ billion on U.S. exports in a specific year and Americans spend $\$ 5$ billion on imports from abroad in the same year. O decrease their holdings of foreign currencies, lend to foreigners, or do a little of both.
What will happen to the U.S. real interest rate and real exchange rate?Suppose the U.S. economy began to grow more rapidly than other countries in the world.
Answer the following questions in words and with a diagram.Our educator team will work on creating an answer for you in the next 6 hours.
That is, when the price level in the United States rises, exports decline by more than they previously did.
Briefly explain.Why does monetary policy have a greater effect on aggregate demand in an open economy than in a closed economy?Suppose the rate of growth of the economies in the BRIC nations (Brazil, Russia, India, and China) slows down,causing U.S. net exports to fall by $\$ 75$ billion.
"U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods create a supply of foreign currencies." Problem 14 Explain how U.S. exports and imports each affect domestic production. Define net exports.
Will the changes in equilibrium real GDP and the price level be larger or smaller than they would be if the tax increase affected only aggregate demand? Suppose that real interest rates increase across Europe.