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:

High Cholesterol

A condition characterized by elevated levels of cholesterol in the blood, which can increase the risk of developing cardiovascular diseases.

Heart Attack

A medical condition that occurs when the flow of oxygen-rich blood to a section of heart muscle is blocked, which can damage or destroy the heart muscle.

Cardiovascular Death

Mortality resulting from heart conditions or diseases of the blood vessels, including heart attacks and stroke.

Ethnic Group

A community or population made up of people who share a common cultural background or descent, including language, religion, and traditional practices.