When Variable Net Exports Are Added to the Aggregate Expenditure

question 5

Multiple Choice

When variable net exports are added to the aggregate expenditure line, the resulting planned aggregate expenditure line becomes

• A)steeper because net exports increase as real domestic income increases
• B)flatter because net exports increase as real domestic income increases
• C)steeper because net exports decrease as real domestic income increases
• D)flatter because net exports decrease as real domestic income increases
• E)flatter because imports decrease as real domestic income increases

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Definitions:

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