An increase in foreign income has which of the following effects?

Increase in imports

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Increase in exports

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Decrease in trade balance

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Decrease in aggregate demand

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Solution

The correct option is B
Increase in exports

An increase in foreign income leads to an increase in exports.

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An increase in foreign income has which of the following effects?

The correct option is B Increase in exports An increase in foreign income leads to an increase in exports.

The correct option is B
Increase in exports

An increase in foreign income leads to an increase in exports.