What is the impact of net exports on the aggregate expenditure line?
A) They cause the line to shift upward in a parallel fashion.
B) They cause the line to shift downward in a parallel fashion.
C) They make the line steeper.
D) They make the line flatter.
E) They make the slope of the line equal 1.
Correct Answer:
Verified
Q2: Adding net exports to aggregate expenditure always
A)increases
Q3: The marginal propensity to import is defined
Q4: If net exports increase by $400 billion
Q5: If the MPC equals 0.7 and the
Q6: The formula for the spending multiplier in
Q9: If net exports increase by $350 billion
Q10: Net exports are a leakage from the
Q12: When variable net exports are included in
Q93: Exports are an injection into the circular
Q96: Imports are a leakage from the circular
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