Suppose exports are $940 and imports are given by IM = 0.1Y.At what level of national income will net exports equal zero?
A)$0
B)$9400
C)$15 730
D)$94
E)$27 750

Name: Suppose exports are $940 and imports are given by IM = 0.1Y.At what level of national income will net exports equal zero? A)$0 B)$9400 C)$15 730 D)$94 E)$27 750
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Net exports equal zero when exports equal imports. Given exports are $940 and imports are IM = 0.1Y, set 940 = 0.1Y. Solving for Y gives Y = 9400.

Suppose Exports Are $940 and Imports Are Given by IM