Suppose That a Change in Consumer Preferences Leads to a $50

question 90

Multiple Choice

Suppose that a change in consumer preferences leads to a $50 billion decrease in net exports.
If the value of the multiplier is 3, what is the size of the shift in the aggregate demand after
The multiplier process works through the economy?

• A) $150 billion
• B) $100 billion
• C) Less than $50 billion
• D) Cannot be determined without information on exports