Complete the Following Table and Answer the Next Question(s) on the Basis

question 16

Multiple Choice

Complete the following table and answer the next question(s) on the basis of the resulting data.All figures are in billions of dollars. Other things equal, an increase in an economy's exports will:

• A)lower the marginal propensity to import.
• B)have no effect on domestic GDP because imports will change by an offsetting amount.
• C)decrease its domestic aggregate expenditures and therefore decrease its equilibrium GDP.
• D)increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.

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Definitions:

Nonbanking Public

Individuals and businesses that are participants in the financial markets but do not have the authority to accept deposits or provide banking services.

Money Supply

Money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Currency

The system of money in general use in a particular country.

Nonbanking Public

Individuals and entities that do not participate in the banking system or have no access to banking services, often including the unbanked and underbanked segments of the population.