Multiple Choice
Exports decrease by $500 billion, investment increases by $300 billion, and government expenditure increases by $200 billion. As a result, autonomous expenditures ________ , total expenditures ________ , and equilibrium real GDP ________.
A) decreases by $300 billion; decreases; decreases by more than $300 billion
B) is unchanged; is unchanged; is unchanged
C) decreases by $200 billion; decreases; decreases by more than $200 billion
D) increases by $500 billion; increases; increases by more than $500 billion
E) increases by $3500 billion; increases; increases by more than $300 billion
Correct Answer:

Verified
Correct Answer:
Verified
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