Consider the Net Export Function

question 118

Multiple Choice

Consider the net export function.Suppose exports are $1850 and imports are given by IM = 0.13Y.At what level of national income will net exports equal zero?

• A)$0
• B)$277
• C)$1573
• D)$14 231
• E)$27 750

---

Definitions:

Present Values

The today's equivalent value of future money or cash flow series, calculated with a defined rate of return.

Cash Inflows

Money received by a business from its activities, e.g., sales of goods, provision of services, loans received.

Cash Outflows

Cash Outflows are the amounts of money paid out by a business in a period, including expenses, investments, and loans repayments.

Profitability Index

A calculation used to determine the relative profitability of an investment, computed by dividing the present value of future cash inflows by the initial investment cost.