When Determining the AE Function for an Open Economy with Government

question 1

Multiple Choice

When determining the AE function for an open economy with government, it is generally assumed that as real national income

• A)increases, imports will decrease.
• B)decreases, exports will decrease.
• C)decreases, net exports will decrease.
• D)increases, exports will decrease.
• E)increases, net exports will decrease.

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Definitions:

Somnambulism

Somnambulism, also known as sleepwalking, is a disorder that involves walking or performing other activities while appearing to be asleep.

Wandering

An aimless or undirected movement or thought pattern.

Asleep

A state of rest where consciousness is suspended, and the body undergoes recovery and growth processes.

Sleepwalking

A sleep disorder that involves getting up and walking around or performing other complex behaviors while in a state of sleep, typically occurring during deep sleep phases.