If foreigners decide to increase their purchases of U.S.-made goods by $15 million, real GDP will

Question

Quizplus · Accepted Answer

When foreigners increase their purchases of U.S.-made goods, it leads to an increase in exports, which is a component of GDP. This increase in demand typically results in a multiplier effect, where the initial increase in spending leads to further increases in income and consumption, ultimately increasing the real GDP by more than the initial amount.

If Foreigners Decide to Increase Their Purchases of U