The Table Shows a Private Open Economy

question 102

Multiple Choice

The table shows a private open economy. All figures are in billions of dollars. Refer to the above table. If the investment Ig in this economy is independent of income GDP, then a $10 increase in its net exports would increase its equilibrium real GDP by:

• A) $25
• B) $50
• C) $100
• D) $200

---

Definitions:

Acceptance

The act of agreeing to the terms of an offer, thereby forming a contract.

Legally Enforceable Contract

An agreement between parties that is recognized by law and can be enforced in court if not fulfilled.

Breached

Violation or breaking of a law, duty, or agreement.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement.