An increase in real disposable income will _____
A) increase the value of net imports of a country.
B) decrease the value of net exports of a country.
C) increase government purchases.
D) decrease government purchases.
E) increase net taxes.

Question

Quizplus · Accepted Answer

An increase in real disposable income will increase consumption, which will increase imports. This will decrease net exports.

An Increase in Real Disposable Income Will _____