Question

Real-balances effect household expectations interest-rate effect personal income tax rates profit expectations national incomes abroad government spending foreign purchases effect exchange rates degree of excess capacity answer the question based on the accompanying list of factors that are related to the aggregate demand curve. investment spending would most likely be influenced by changes in

Answer 1

Country with higher national income involved in imports of more goods and thus affects net export spending. Change in exchange rate causes change in the value of different country's currency and as a result affect the exports and imports. A change in net export spending would most likely be caused by national income abroad and exchange rates.