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If Net Exports Increase by $450 Billion at Every Level

Question 3

Multiple Choice

If net exports increase by $450 billion at every level of income, equilibrium real GDP demanded will


A) increase by $450 billion
B) decrease by $450 billion
C) increase by more than $450 billion because of the multiplier effect
D) increase by less than $450 billion
E) decrease by more than $450 billion because of the multiplier effect

Correct Answer:

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