Question

Which of the following will NOT cause the AD in the US to decrease? A decline...

Which of the following will NOT cause the AD in the US to decrease?

A decline in the US business confidence

A decline in the US consumer confidence

A recession in a major trading partner economy that purchases US goods

A depreciation of the US dollar in the forex market

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Answer #1

Correct option:

A depreciation of the US dollar in the forex market (this would cause exports to rise, AD would shift to the right)

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