Figure 13.2.Australian Economy Under a Fixed Exchange Rate System
-Refer to Figure 13.2.Starting at equilibrium income $50 billion,where (S- I) ₀ intersects (X-M) ₀,suppose that worsening economic conditions abroad lead to an autonomous decrease in Australian exports of $5 billion.Australian income thus ____ which leads to Australia's trade account moving to a ____.

Question

Figure 13.2.Australian Economy Under a Fixed Exchange Rate System

-Refer to Figure 13.2.Starting at equilibrium income $50 billion,where (S- I) ₀ intersects (X-M) ₀,suppose that worsening economic conditions abroad lead to an autonomous decrease in Australian exports of $5 billion.Australian income thus ____ which leads to Australia's trade account moving to a ____.

Quizplus · Accepted Answer

The Answer of Figure 13.2.Australian Economy Under a Fixed Exchange Rate System -Refer to Figure 13.2.Starting at equilibrium income $50 billion,where (S- I)₀ intersects (X-M)₀,suppose that worsening economic conditions abroad lead to an autonomous decrease in Australian exports of $5 billion.Australian income thus ____ which leads to Australia's trade account moving to a ____.

Figure 132