Suppose Exports Are $200 and Imports Are Given by IM

question 50

Multiple Choice

Suppose exports are $200 and imports are given by IM = 0.2Y.At what level of national income will net exports equal zero?

• A)$0
• B)$200
• C)$250
• D)$1000
• E)$1250

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding conflicting cognitions (e.g., beliefs, attitudes, or values), leading to a motivation to reduce the inconsistency.

Contradictory Attitudes

Holding conflicting or opposing views towards an object, person, or situation simultaneously.

Same Object

refers to an identical item or entity being considered or discussed, emphasizing the lack of difference or distinction between them.

Hedonic Purchases

Purchases made for pleasure and enjoyment rather than practical reasons.