If Net Exports Increase, but Neither Government Expenditure nor Net

question 259

True/False

If net exports increase, but neither government expenditure nor net taxes change, investment must increase.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Inelastic

A situation in which the demand or supply for a good or service is relatively unresponsive to changes in price.

Price Elasticity

The measurement of demand's elasticity to price changes for a particular good.

Midpoint Formula

A method used in mathematics to calculate the midpoint, or average, of two points on a line segment.