Which of the Following Is True of Exports as a Component

question 23

Multiple Choice

Which of the following is true of exports as a component of aggregate demand?

• A) If exports are greater than imports, the economy has a trade deficit.
• B) Exports increase the economy's leakages and reduce the size of the multiplier.
• C) Exports are independent of the domestic economy's level of income.
• D) As income levels increase, an economy moves from a trade surplus to a trade deficit.

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