Question

The foreign purchases effect Multiple Choice shifts the aggregate demand curve rightward. shifts the aggregate demand curve leftward. shifts the aggregate supply curve rightward. moves the economy along a fixed aggregate demand curve.

Answer 1

The foreign purchases shifts the aggregate demand curve rightward.

What is foreign purchase?

Foreign purchase involves the purchase of goods by individuals who are not native or indigene of a nation.

They come to export goods from a particular nation to their own nation.

Increase in the demand will shift the curve to the right.

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