Multiple Choice
If net exports increase by $400 billion at every level of income, the aggregate expenditure line will
A) shift upward by $400 billion
B) shift downward by $400 billion
C) shift upward by more than $400 billion because of the multiplier effect
D) shift upward by less than $400 billion
E) shift downward by more than $400 billion because of the multiplier effect
Correct Answer:
Verified
Correct Answer:
Verified
Q7: The larger the marginal propensity to import,
Q8: The spending multiplier with variable net exports
Q9: Exhibit 10-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 10-8
Q10: If variable net exports increase by the
Q11: If the MPC equals 0.7 and the
Q13: The marginal propensity to import<br>A)is negative<br>B)is positive<br>C)is
Q14: Exhibit 10-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 10-8
Q15: What is the impact of net exports
Q16: The formula for the spending multiplier in
Q17: When variable net exports are included in