Figure 36 -9 In Figure 36-9, the C + I + G

Multiple Choice

Figure 36 -9

In Figure 36-9, 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.