Foreign Sector Substitution Effect
Which of the following best describes the foreign sector substitution effect on aggregate demand?
A
A decrease in domestic prices increases the cost competitiveness of exports, raising net exports.
B
A rise in domestic prices makes foreign goods relatively cheaper, increasing imports and reducing net exports.
C
An increase in domestic prices has no impact on the relative attractiveness of imported goods.
D
An increase in domestic prices boosts domestic incomes, thereby increasing aggregate demand.
Question Leaderboard
| Rank | |||||
|---|---|---|---|---|---|
| #1 | kimkevinlov1026 | 1 | 1 | 0m 25s | 75 |
| #2 | omar.hossam2612 | 1 | 1 | 0m 35s | 65 |
| #3 | jia.savla10 | 1 | 1 | 0m 42s | 58 |
| #4 | brainna.guscott | 1 | 1 | 0m 48s | 52 |
| #5 | bestecolpan | 1 | 1 | 0m 50s | 50 |
| #6 | vanessaescobie | 1 | 1 | 0m 54s | 46 |
| #7 | valentina.rivas | 1 | 2 | 1m 04s | 26 |
| #8 | zaarakatyal | 0 | 1 | 0m 31s | -41 |
| #9 | salummrisho43 | 0 | 1 | 0m 48s | -58 |
| #10 | nisharga.natarajan | 1 | 1 | 5m 29s | -229 |
Items per page:
10
1 – 10 of 10