The figure given below shows the aggregate expenditures function of an economy.
Figure 9.5

-Refer to Figure 9.5. Which of the following statements is true?
A) Autonomous net exports equal the distance between A and C.
B) Autonomous consumption is equal to the distance between A and C.
C) There is a deficit in the merchandise and services account.
D) Exports exceed imports for the country in question.
E) Autonomous consumption is equal to the distance between 0 and C.

Question

The figure given below shows the aggregate expenditures function of an economy.
Figure 9.5
 
-Refer to Figure 9.5. Which of the following statements is true?
A) Autonomous net exports equal the distance between A and C. 
B) Autonomous consumption is equal to the distance between A and C. 
C) There is a deficit in the merchandise and services account. 
D) Exports exceed imports for the country in question. 
E) Autonomous consumption is equal to the distance between 0 and C.

Quizplus · Accepted Answer

The Answer of The figure given below shows the aggregate expenditures function of an economy.
Figure 9.5
 
-Refer to Figure 9.5. Which of the following statements is true?
A) Autonomous net exports equal the distance between A and C. 
B) Autonomous consumption is equal to the distance between A and C. 
C) There is a deficit in the merchandise and services account. 
D) Exports exceed imports for the country in question. 
E) Autonomous consumption is equal to the distance between 0 and C.

The Figure Given Below Shows the Aggregate Expenditures Function of an Economy