Suppose Exports (X)=100,Y=500,and Imports Are Equal to MY,where M Is

question 29

Multiple Choice

Suppose exports (X) =100,Y=500,and imports are equal to mY,where m is the marginal propensity to import.Net exports would be equal to zero if the marginal propensity to import were

• A)1%.
• B)5%.
• C)10%.
• D)20%.
• E)50%.

---

Definitions:

Net Loss

A financial situation where total expenses exceed total revenues over a specific period, reflecting a negative profit.

World Trade Organization

An international organization established to supervise and liberalize world trade.

Trade Agreements

Formal accords between countries to regulate tariffs, access, and standards in international trade.

Direct Enforcer

A principal or authority that ensures compliance with rules or laws directly, without intermediaries.