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    Exam 22: Adding Government and Trade to the Simple Macro Model
  5. Question
    The AE Function for an Open Economy with Government Can
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The AE Function for an Open Economy with Government Can

Question 28

Question 28

Multiple Choice

The AE function for an open economy with government can be written as


A) AE = C + I - G + (X - IM) .
B) AE = C + I + G - (X - IM) .
C) AE = C + I - G - (X + IM) .
D) AE = C + I + S + (X + IM) .
E) AE = C + I + G + (X - IM) .

Correct Answer:

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