Consider the AE Function in a Simple Macro Model with Government

question 67

Multiple Choice

Consider the AE function in a simple macro model with government and foreign trade.It is generally assumed that as real national income

• A)increases,exports will decrease.
• B)increases,net exports will decrease.
• C)increases,imports will decrease.
• D)decreases,net exports will decrease.
• E)decreases,exports will decrease.