Which of the Following Is True Concerning the Impact of Net

question 19

Multiple Choice

Which of the following is true concerning the impact of net exports in the model with AE = C + I + NX + G?

• A)Net exports are a leakage from the economy if imports exceed exports.
• B)Net exports are always positive.
• C)Net exports are negative because exports are assumed to be autonomous.
• D)Net exports must be negative if planned investment is positive.
• E)Net exports are an injection into the economy if imports equal exports.

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