Figure 20-9 -In Figure 20-9, the C + I + G

Multiple Choice

Figure 20-9

-In Figure 20-9, 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.