Figure 20-9 -In Figure 20-9,the C + I + G + (X

Multiple Choice

Figure 20-9
-In Figure 20-9,the C + I + G + (X − IM) ₁ line is flatter than the C + I + G + (X − IM) ₀ line because the

A) (X − IM) ₁ line indicates that net exports decline as GDP rises.
B) (X − IM) ₁ line indicates that net exports rise as GDP rises.
C) multiplier is greater for the (X − IM) ₁ line.
D) (X − IM) ₁ line indicates that tariffs,quotas,and other trade barriers are keeping net exports below their full potential.