When We Relax the Assumption That Net Exports Do Not

question 12

Multiple Choice

When we relax the assumption that net exports do not change with income, the aggregate expenditure function

• A)becomes steeper because net exports decrease as real domestic income increases
• B)becomes steeper because net exports increase as real domestic income increases
• C)becomes flatter because net exports decrease as real domestic income increases
• D)becomes flatter because net exports increase as real domestic income increases
• E)remains unchanged because it is not affected by changes in net exports

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Definitions:

Property Insurance Policies

Contracts that provide financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.

Insurable Interest

A requirement that a person seeking to purchase insurance has a legitimate interest in safeguarding the item or life being insured from loss or damage.

Market Value

The amount for which something can be sold on a given market at a specific time.

Property

Legal rights to own, use, and dispose of land, buildings, goods, intellectual creations, and other items.