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Explain whether each of the following events would increase, decrease, or have no effect on the short-run aggregate demand curve: Decrease in the U.S. price

Explain whether each of the following events would increase, decrease, or have no effect on the short-run aggregate demand curve: Decrease in the U.S. price level makes American goods more attractive to foreign buyers. Households decide to consume a larger share of their income. Worsening profit expectations cause firms to decrease their expenditures on new machinery and equipment. As the price level declines, the purchasing power of currency increases, and thus Americans increase their purchases of computers and office equipment. Because of decreasing political tensions in North Korea, the U.S. Congress reduces purchases of jet fighters and tanks. Economic expansion in Europe results in an increase in the European demand for Boeing jetliners. Fearing a future economic downturn, households decide to save a larger fraction of their income

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