The long-run effect of a decline in exports is
A) an ambiguous change in net exports and a decline in both investment and consumption.
B) for there to be no change in any of the aggregate expenditure categories.
C) for net exports to decline, with no change in investment or consumption.
D) an ambiguous change in net exports and an increase in both consumption and investment.
E) an increase in net exports, consumption, and investment.
Correct Answer:
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