Figure 36-9 ​ ​

question 215

Multiple Choice

Figure 36-9
​ ​
-In Figure 36-9, the C + I + G + (X − IM) 1 line is flatter than the C + I + G + (X − IM) 0 line because the

• A)(X − I
• M)1 line indicates that net exports decline as GDP rises.
• B)(X − I
• M)1 line indicates that net exports rise as GDP rises.
• C)multiplier is greater for the (X − I
• M)1 line.
• D)(X − I
• M)1 line indicates that tariffs, quotas, and other trade barriers are keeping net exports below their full potential.