Why Are Exports Treated as Autonomous Expenditure in Our Simple

question 86

Multiple Choice

Why are exports treated as autonomous expenditure in our simple macro model? Because

• A)exports typically do not change as a result of a change in Canadian national income.
• B)exports are always constant in dollar terms.
• C)they are a component of net exports,which is autonomous in our model.
• D)exports are a small component in the Canadian economy and are not significant in the model.
• E)exports are a function of Canadian national income,which is autonomous in our model.

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Definitions:

Existing Market

A market where products or services are already available and where a business may face competition upon entry.

Product Line

A group of closely related products that are treated as a unit because of similar marketing strategy, production, or end-use considerations.