How does an increase in foreign consumer income affect domestic aggregate expenditures and demand? I need to explain and show diagram.  I am trying to answer this question but am not sure if I understand it correctly.  I appreciate your help.

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If foreign consumer income rises then domestic aggregate expenditures and demand will, all other things being equal, rise.  The reason for this is that foreign demand for imports will rise.

Let us say that we are using the United States as the “domestic” country.  People in countries like Japan, Canada, Germany, and China will be willing to...

(The entire section contains 182 words.)

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