A Permanent Reduction in Net Exports Leads to

Multiple Choice

A permanent reduction in net exports leads to

A) a more than proportional decrease in real Gross Domestic Product (GDP) .
B) a less than proportional decrease in real Gross Domestic Product (GDP) .
C) a proportional increase in real Gross Domestic Product (GDP) .
D) a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP) .