The AE Function for an Open Economy with Government Can

question 28

Multiple Choice

The AE function for an open economy with government can be written as

• A)AE = C + I - G + (X - IM).
• B)AE = C + I + G - (X - IM).
• C)AE = C + I - G - (X + IM).
• D)AE = C + I + S + (X + IM).
• E)AE = C + I + G + (X - IM).

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Definitions:

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