The AE Function for an Open Economy with Government Can

question 28

Multiple Choice

The AE function for an open economy with government can be written as

• A)AE = C + I - G + (X - IM).
• B)AE = C + I + G - (X - IM).
• C)AE = C + I - G - (X + IM).
• D)AE = C + I + S + (X + IM).
• E)AE = C + I + G + (X - IM).

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Definitions:

Apple Juice

A beverage made by pressing and extracting the liquid from apples.

Orange Juice

A beverage made by extracting the liquid from oranges, often consumed for its nutritional value and taste.

Picture Frames

are decorative edgings for pictures, such as photographs or paintings, intended to enhance their appearance, make them easier to display, and protect them.

Demand

The willingness and ability of consumers to purchase a specific quantity of goods or services at various prices during a certain time period.