If Net Exports Increase by $450 Billion at Every Level

question 3

Multiple Choice

If net exports increase by $450 billion at every level of income, equilibrium real GDP demanded will

• A)increase by $450 billion
• B)decrease by $450 billion
• C)increase by more than $450 billion because of the multiplier effect
• D)increase by less than $450 billion
• E)decrease by more than $450 billion because of the multiplier effect

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Definitions:

Morphemes

The smallest units of meaning in a language, which can be a single word, prefix, or suffix.

Phonemes

Phonemes are the basic units of sound in a language that distinguish one word from another, for example, the difference in sound between "bat" and "pat."

Speech Stream

The continuous flow of spoken language that a listener receives, which they must segment into recognizable units or words.

Ambiguous Referents

Words or phrases that have more than one possible referent, or whose referent is not clear or definite.