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Other Things Equal, an Increase in an Economy's Exports Will

Question 122

Multiple Choice

Other things equal, an increase in an economy's exports will


A) lower the marginal propensity to import.
B) have no effect on domestic GDP because imports will change by an offsetting amount.
C) decrease its domestic aggregate expenditures and therefore decrease its equilibrium GDP.
D) increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.

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