Recall the Application about the U.S. "Locomotive Effect": how U.S. growth affects foreign economies and the demand for foreign products, to answer the following question(s) . From the early 1990s until quite recently, the U.S. economy grew faster than the rest of the world, with its share of the world economy increasing from approximately 26 percent in 1992 to over 32 percent in 2001. Because the U.S. economy is such an important part of the world economy, its growth promoted growth in foreign countries.
-According to this Application, growth in China and India caused U.S. exports to increase. Because of this increase in U.S. exports, U.S. income will
A) increase by the same amount.
B) increase by a larger amount.
C) decrease by the same amount.
D) decrease by a larger amount.
Correct Answer:
Verified
Q150: Q151: What happens to U.S. GDP when foreign Q152: Why do our political leaders favor exports Q153: Suppose the overall MPC is 0.9. If Q154: A nation's exports are NOT impacted by Q156: Recall the Application about the U.S. "Locomotive Q157: In the income-expenditure model, for each price Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()