Suppose That a Change in Trade Policies Leads to a $20

question 139

Multiple Choice

Suppose that a change in trade policies leads to a $20 billion increase in net exports. If the value of the multiplier is 2, what is the size of the shift in the aggregate demand after
The multiplier process works through the economy?

• A) $40 billion
• B) Less than $20 billion
• C) More than $40 billion
• D) Cannot be determined without information on the trade policies in question

---

Definitions:

Design Library

A collection or repository of design resources, standards, components, or templates that can be utilized in the creation of new designs or products.

High-Power Drills

Drilling machines with high output power, designed for heavy-duty tasks and capable of penetrating hard materials.

FR(%)

Failure Rate (Percent), a measure often used in reliability engineering to indicate the likelihood of failure per unit of time.

MTBF

Mean Time Between Failures, a reliability metric that measures the average time between failures of a system or component.