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Question 10 Assume that net exports increase by $1 billion. Equilibrium Real GDP will rise by more than $1 billion. Explain why. an increase in net exports appreciates the dollar causing a further increase in net exports. O an increase in net exports causes an increase in tax revenues which increases government spending O an increase in net exports increases income causing an increase in induced consumption O an increase in net exports causes an increase in the money supply -> Moving to another question will save this response.

Question 10 Assume that net exports increase by $1 billion. Equilibrium Real GDP will rise by more than $1 billion. Explain why. an increase in net exports appreciates the dollar causing a further increase in net exports. O an increase in net exports causes an increase in tax revenues which increases government spending O an increase in net exports increases income causing an increase in induced consumption O an increase in net exports causes an increase in the money supply -> Moving to another question will save this response.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Moving to another question will save this response. Question 10 Assume that net exports increase by $1 billion. Equilibrium Real GDP will rise by more than $1 billion. Explain why. O an increase in net exports appreciates the dollar causing a further increase in net exports. an increase in net exports causes an increase in tax revenues which increases government spending O an increase in net exports increases income causing an increase in induced consumption an increase in net exports causes an increase in the money supply A Moving to another question will save this response.
Transcribed Image Text:Moving to another question will save this response. Question 10 Assume that net exports increase by $1 billion. Equilibrium Real GDP will rise by more than $1 billion. Explain why. O an increase in net exports appreciates the dollar causing a further increase in net exports. an increase in net exports causes an increase in tax revenues which increases government spending O an increase in net exports increases income causing an increase in induced consumption an increase in net exports causes an increase in the money supply A Moving to another question will save this response.
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