Figure 20-9 -In Figure 20-9, the C + I + G

question 36

Multiple Choice

Figure 20-9

-In Figure 20-9, 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.

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Definitions:

Figurative Analogies

Comparisons that draw relationships between two different things based on resemblance in some aspects, often used to explain complex ideas or emotions.

Behavioral Response

The observable reaction or action of an individual following a stimulus or in a particular situation.

Verbal Response

A spoken or written reply or reaction to a question, statement, or situation.

Nonverbal Response

Communication without words, using gestures, facial expressions, and body language to convey a message or reaction.