Multiple Choice
Other things equal, an increase in an economy's exports will:
A) lower the marginal propensity to import.
B) have no effect on equilibrium GDP because imports will change by an offsetting amount.
C) decrease its aggregate expenditures and therefore decrease its equilibrium GDP.
D) increase its aggregate expenditures and therefore increase its equilibrium GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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