If Net Exports Fall $40 Billion and the MPC Is

question 295

Multiple Choice

If net exports fall $40 billion and the MPC is 8/11 and there is a multiplier effect, but no crowding out and no investment accelerator, then

• A)aggregate demand falls by 3 x $40 billion.
• B)aggregate demand falls by 11/3 x $40 billion.
• C)aggregate demand falls by 11/8 x $40 billion.
• D)None of the above is correct.

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Definitions:

Steel-Toed Boots

Protective footwear with a reinforced toe area to protect feet from heavy objects, common in industrial and construction settings.

Safety Shoes

Footwear designed to protect the feet from a wide range of workplace hazards, including impact, compression, and puncture.

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The International Lubricant Standardization and Approval Committee, representing both domestic and Japanese auto manufacturers, which creates standards and ratings for oils used in the automotive industry.

EPA

The Environmental Protection Agency, a U.S. federal agency responsible for regulating and ensuring the protection of the environment and human health.