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:

Inches

A unit of measurement in the Imperial system equal to one-twelfth of a foot, commonly used to measure length.

CN III

The third cranial nerve, also known as the oculomotor nerve, which is responsible for controlling most of the eye's movements, the constriction of the pupil, and maintaining an open eyelid.

Accommodate

To adjust actions, plans, or conditions to meet the needs or requirements of others.

Equilibrium

A state of balance or stability within a system, often referring to physical balance or chemical reactions.