Assume That a $1

question 296

Multiple Choice

Assume that a $1.00 increase in exports increases GDP by $3.00, and a $1.00 increase in income increases import spending by $0.15. In this case, a ________ million increase in exports will increase net exports by $550 million.

• A) $550
• B) $700
• C) $1,000
• D) $1,350

---

Definitions:

Babinski Sign

The Babinski sign is a reflex observed in infants when the sole of the foot is stroked, causing the big toe to move upward; it typically disappears as the child matures.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby while removing waste products.

Pregnancy

The condition of having a developing embryo or fetus in the uterus, marked by various physical and hormonal changes.

Hormones

Chemical messengers produced by the endocrine glands that regulate bodily functions and processes.