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If Net Exports Increase by $350 Billion at Every Level

Question 2

Multiple Choice

If net exports increase by $350 billion at every level of income, the net export line will


A) shift upward by $350 billion
B) shift downward by $350 billion
C) shift upward by more than $350 billion because of the multiplier effect
D) shift upward by less than $350 billion
E) shift downward by more than $350 billion because of the multiplier effect

Correct Answer:

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