While exports must be added to the total fi nal expenditures, imports must be deducted from the total fi nal expenditures to arrive at the aggregate demand. Th e introduction of foreign trade has the...

While exports must be added to the total fi nal expenditures, imports must be deducted from the total fi nal expenditures to arrive at the aggregate demand.

Th e introduction of foreign trade has the aff ect of increasing the equilibrium level of income