Suppose Exports (X)= 100,real GDP (Y)= 500,and Imports Are Equal

question 83

Multiple Choice

Suppose exports (X) = 100,real GDP (Y) = 500,and imports are equal to mY,where m is the marginal propensity to import.Net exports would be equal to zero if the marginal propensity to import were

• A)1%.
• B)5%.
• C)10%.
• D)20%.
• E)50%.

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Definitions:

Welfare-Maximizing

An economic or policy goal aimed at achieving the highest possible level of welfare for the population, taking into account factors such as distribution of wealth, health, and overall quality of life.

Competitively

Refers to a market condition where businesses or individuals vie against each other to gain economic advantage or win consumers' favor.

Profit-Maximizes

Refers to the strategy or objective of an entity or individual aimed at achieving the highest possible profit from its operations, typically by managing costs, pricing, and output.

Profit-Maximizes

Strategies or actions by firms aimed at increasing their profits to the highest possible level.