If Net Exports Increase by $400 Billion at Every Level

question 12

Multiple Choice

If net exports increase by $400 billion at every level of income, the aggregate expenditure line will

• A)shift upward by $400 billion
• B)shift downward by $400 billion
• C)shift upward by more than $400 billion because of the multiplier effect
• D)shift upward by less than $400 billion
• E)shift downward by more than $400 billion because of the multiplier effect

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Definitions:

Appetite

The natural desire to satisfy a bodily need, especially for food.

Insulin

A chemical produced in the pancreas that assists in regulating sugar levels in the blood by promoting glucose intake by tissues.

Medial Hypothalamus

An area of the brain, part of the hypothalamus, involved in the regulation of appetite, aggression, and certain aspects of emotion.

Lateral Hypothalamus

Part of the hypothalamus gland in the brain, believed to control hunger and thirst by regulating the body's perception of the need to eat or drink.