Table 131Canada's Saving,Investment,Import,and Export Functions (In Billions of Dollars) Under a a System

question 98

Multiple Choice

Table 13.1.Canada's Saving,Investment,Import,and Export Functions (in billions of dollars) Under a System of Fixed Exchange Rates
Export Function X = 3000
Investment Function I = 1000
Saving Function S = -1000 + 0.2Y
Import Function M = 500 + 0.25Y
-Referring to Table 13.1,if Canada's income rises by $200 billion,imports would rise by:

• A) $50 billion
• B) $75 billion
• C) $100 billion
• D) $125 billion

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