Multiple Choice
Which of the following is true concerning the impact of net exports in the model with AE = C + I + NX + G?
A) Net exports are a leakage from the economy if imports exceed exports.
B) Net exports are always positive.
C) Net exports are negative because exports are assumed to be autonomous.
D) Net exports must be negative if planned investment is positive.
E) Net exports are an injection into the economy if imports equal exports.
Correct Answer:

Verified
Correct Answer:
Verified
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
Q18: The formula for the spending multiplier when
Q20: If the marginal propensity to consume (MPC)
Q21: Since imports are positively related to domestic
Q22: Exhibit 10-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 10-9
Q23: The marginal propensity to import is defined
Q24: Imports increase as domestic income increases.