An Increase in Real Net Exports Leads to an Increase

question 12

Multiple Choice

An increase in real net exports leads to an increase in real GDP. Further

• A) real consumption spending and real saving increase.
• B) real consumption spending increases but real saving does not change.
• C) real consumption spending increases while real investment spending decreases.
• D) real government spending decreases to offset the increase in real net exports.

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Definitions:

Empathic

Having the capacity to understand and share the feelings or emotional states of another person.

Projection

A defense mechanism in which individuals attribute their own unacceptable thoughts, feelings, or motives to another person.

False Consensus Effect

The tendency to overestimate the extent to which others share our beliefs, attitudes, and behaviors.

Unconscious Mental Dynamics

Refers to the processes and interactions of mental elements within the mind that occur without conscious awareness, influencing thoughts, feelings, and behaviors.