-Refer to Exhibit 8-1

question 70

Multiple Choice

-Refer to Exhibit 8-1.Assume that the economy is originally in equilibrium at point A.If foreign real national income rises,at which point is the economy most likely to end up in the short run?

• A) A
• B) B
• C) C
• D) D
• E) A change in foreign real national income would have no impact on the domestic economy.