Fiscal/Monetary Policy with Low Capital Mobility

Hi all,

Can somebody help me explain the link between expansionary fiscal/monetary policy, an increase in Aggregate Demand and a Decrease in Net Exports? I follow the increase in AD, but I’m not sure I follow the decrease in Net Exports…

If AD = C+I+G+(X-M), is it because the increase in G is larger than the increase in AD, so (X-M) needs to offset?