Multiple Choice
When net exports are included in the aggregate expenditure function, the spending multiplier
A) increases
B) decreases
C) is affected only if exports are greater than imports
D) is affected only if exports are less than imports
E) is affected only if exports are equal to imports
Correct Answer:

Verified
Correct Answer:
Verified
Q25: If the marginal propensity to import (MPM)
Q26: If the MPC = 0.9 and the
Q27: Exhibit 10-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 10-8
Q28: Adding net exports to aggregate expenditure always<br>A)increases
Q29: If the MPS = 0.25 and the
Q30: An economy that engages in international trade
Q31: A more realistic approach has net exports
Q33: Adding variable net exports to aggregate expenditure
Q44: Imports are a leakage from the circular
Q85: Exports are an injection into the circular