Suppose the Rest of the World Experiences an Expansion That

Multiple Choice

Suppose the rest of the world experiences an expansion that causes an increase in foreign income (Y*) .From the domestic economy's perspective,this increase in foreign income will cause which of the following as the domestic economy adjusts to the rise in Y*?

A) an increase in domestic income
B) an increase in imports
C) an increase in net exports
D) all of the above
E) both A and C