The Net Export (NX)function Crosses the Horizontal Axis at a Level

question 33

Multiple Choice

The net export (NX) function crosses the horizontal axis at a level of national income where the

• A)X and IM curves intersect.
• B)X curve reaches the horizontal axis.
• C)IM curve reaches the horizontal axis.
• D)X and IM curves are at their farthest distance apart.
• E)X curve reaches its maximum.

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Definitions:

Stock Option

A financial instrument granting the holder the right, but not the obligation, to buy or sell a stock at an agreed-upon price within a certain period.

Detrimental Reliance

A legal principle where a party suffers harm by relying on a misleading statement or promise of another.

Bargained-for Exchange

A fundamental principle of contract law that involves a mutual exchange of value or promises between parties.

Enforceable Promise

A commitment in a contract that is legally binding and can be upheld in court.