Why are exports treated as autonomous expenditure in our simple macro model? Because
A)exports typically do not change as a result of a change in Canadian national income.
B)exports are always constant in dollar terms.
C)they are a component of net exports,which is autonomous in our model.
D)exports are a small component in the Canadian economy and are not significant in the model.
E)exports are a function of Canadian national income,which is autonomous in our model.

Question

Quizplus · Accepted Answer

Exports are considered autonomous because they are primarily determined by foreign demand and not directly by changes in Canadian national income.

Why Are Exports Treated as Autonomous Expenditure in Our Simple