If the current Net Exports function of Tradeland is given by the expression NX = 100 – 0.2Y, which of the following statements is true? A) Net exports increase if the wealth of Tradeland's consumers rises B) If Tradeland closes its economy to international trade its simple multiplier will fall If prices in Tradeland fall, the number '100' will rise and the number '0.2' will fall D) If the value of Tradeland's currency on foreign exchange markets falls, the number '100' will rise and the number '0.2' will fall. E) Theory can't predict any effect on Net Exports without knowing the size of the output gap.

If the current Net Exports function of Tradeland is given by the expression NX = 100 – 0.2Y, which of the following statements is true? A) Net exports increase if the wealth of Tradeland's consumers rises B) If Tradeland closes its economy to international trade its simple multiplier will fall If prices in Tradeland fall, the number '100' will rise and the number '0.2' will fall D) If the value of Tradeland's currency on foreign exchange markets falls, the number '100' will rise and the number '0.2' will fall. E) Theory can't predict any effect on Net Exports without knowing the size of the output gap.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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