If Net Exports Increase by $400 Billion at Every Level

question 12

Multiple Choice

If net exports increase by $400 billion at every level of income, the aggregate expenditure line will

• A)shift upward by $400 billion
• B)shift downward by $400 billion
• C)shift upward by more than $400 billion because of the multiplier effect
• D)shift upward by less than $400 billion
• E)shift downward by more than $400 billion because of the multiplier effect