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Other Things Being Equal, a Decrease in an Economy's Exports

Question 145

Multiple Choice

Other things being equal, a decrease in an economy's exports will


A) increase domestic aggregate expenditures and the equilibrium level of GDP.
B) decrease domestic aggregate expenditures and the equilibrium level of GDP.
C) have no effect on domestic GDP, because imports will offset the change in exports.
D) increase the amount of imports consumed by the private sector.

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