When Net Exports Are Included in the Aggregate Expenditure Function

question 32

Multiple Choice

When net exports are included in the aggregate expenditure function, the spending multiplier

• A)increases
• B)decreases
• C)is affected only if exports are greater than imports
• D)is affected only if exports are less than imports
• E)is affected only if exports are equal to imports

---

Definitions:

Tangible Objects

Physical items that can be seen, touched, and measured, as opposed to abstract concepts or virtual items.

Organizational Culture

A set of shared values, beliefs, and practices that characterizes an organization and guides its members' behaviors.

Cultural Values

The core principles and ideals upon which an entire community exists and functions, shaping behavior and setting standards for what is important.

Subcultures

Groups within a larger culture that have their own distinct values, behaviors, and traditions.