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If Exports Are $10 Trillion and Imports Are $10

Question 30

Multiple Choice

If exports are $10 trillion and imports are $10.5 trillion, adding net exports to the aggregate expenditures (AE) line that includes consumption, investment, and government spending will cause the AE line to:


A) start at the same point on the vertical axis but will have a flatter slope.
B) start at the same point on the vertical axis but will have a steeper slope.
C) shift up by $0.5 trillion and the new line will be parallel to the original line.
D) shift down by $0.5 trillion and the new line will be parallel to the original line.

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