In a Simple Keynesian Model,when Net Exports Increase,the

question 51

Multiple Choice

In a simple Keynesian model,when net exports increase,the

• A) C + I + G + (X - M₁) line shifts downward.
• B) 45-degree line becomes flatter.
• C) multiplier falls to zero.
• D) aggregate demand curve shifts to the left.
• E) equilibrium level of GDP increases by an amount greater than the increase in net exports.

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Definitions:

Surety's Obligation

A legal responsibility assumed by a surety, guaranteeing the performance or obligations of another party.

Debt

Money owed by one party to another under the condition of repayment.

Surety

A financial guarantee by a third party (the surety) to cover a debtor's obligations in case of default.

Rights to Collateral

Legal entitlements of a secured creditor to seize and sell the collateral if the debtor fails to fulfill the obligations of the loan or debt agreement.