Multiple Choice
When variable net exports are added to the aggregate expenditure line, the resulting planned aggregate expenditure line becomes
A) steeper because net exports increase as real domestic income increases
B) flatter because net exports increase as real domestic income increases
C) steeper because net exports decrease as real domestic income increases
D) flatter because net exports decrease as real domestic income increases
E) flatter because imports decrease as real domestic income increases
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Net exports are a leakage from the
Q2: If net exports increase by $350 billion
Q3: If net exports increase by $450 billion
Q4: The concept of variable net exports is
Q6: In a model which includes variable net
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