Assume That a $1

question 33

Multiple Choice

Assume that a $1.00 increase in exports increases GDP by $3.00, and a $1.00 increase in income increases import spending by $0.15. In this case, a $1,000 million increase in exports will increase net exports by

• A) $550 million.
• B) $700 million.
• C) $1,000 million.
• D) $1,350 million.

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Definitions:

Gasoline Demand

The total quantity of gasoline that consumers are willing and able to purchase at a given price over a certain period.

Price Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price.

Gasoline Demand

Gasoline demand refers to the quantity of gasoline that consumers are willing and able to purchase at various prices during a certain period of time.

Quantity Demanded

The amount of a good that buyers are willing and able to purchase at a specific price.