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A United States firm sells $10 million worth of goods to a firm in Argentina, where the currency is the peso. How will the transaction affect Argentina's aggregate demand? Explain (2010 FR #3a)

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User Petzi
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1 Answer

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Answer: The transaction will increase the value of imports of Argentina, which reduces the value of net exports for the nation and as a result, reduces aggregate demand since net exports is a component of aggregate demand.

Explanation: This was the answer on a key that i found, hope it helps!

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User Fredda
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