Suppose That the Rest of the World Experiences an Economic

question 9

Multiple Choice

Suppose that the rest of the world experiences an economic boom causing an increase in foreign output (Y*) .This increase in Y* will NOT cause which of the following to occur?

• A)the domestic country's output to increase
• B)the domestic country's consumption to increase
• C)the domestic country's output to increase and its trade balance to worsen as imports increase
• D)all of the above
• E)none of the above

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Definitions:

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5 Ws and H

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