Solved

When Variable Net Exports Are Added to the Aggregate Expenditure

Question 5

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions