Export receipts decrease, import payments increases, how will AD change?radio_button_uncheckedincreaseradio_button_uncheckeddecreaseradio_button_uncheckedno changeSUBMIT
Question
Export receipts decrease, import payments increases, how will AD change?radio_button_uncheckedincreaseradio_button_uncheckeddecreaseradio_button_uncheckedno changeSUBMIT
Solution
If export receipts decrease, it means the country is earning less from its exports. On the other hand, if import payments increase, the country is spending more on its imports. Both of these factors would lead to a decrease in the country's net exports, which is a component of Aggregate Demand (AD). Therefore, AD would decrease.
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