An example of a negative demand shock is

A. a decrease in the money supply.
B. a decrease in government spending.
C. an increase in foreign export demand.
D. a decrease in the price of imported oil.
E. -a decrease in the money supply and a decrease in government spending.


E. -a decrease in the money supply and a decrease in government spending.

Decreases in the items mentioned in answers a decrease in the money supply and a decrease in government spending would be unfavorable demand shocks. Imported oil price changes are supply shocks. An increase in foreign export demand would be a favorable demand shock.

Business

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