Political Instability Abroad Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets.
Refer to Political Instability Abroad. What would the change in the exchange rate make happen to U.S. net exports and U.S. aggregate demand?
A. Net exports would rise which by itself would increase U.S. aggregate demand.
B. Net exports would fall which by itself would decrease U.S. aggregate demand.
C. Net exports would fall which by itself would increase U.S. aggregate demand.
D. Net exports would rise which by itself would decrease U.S. aggregate demand.