Question: Explain the short-run impact upon net exports and GDP of the following in the multiplier model, using Table 28-1 where possible: a. An increase in
Explain the short-run impact upon net exports and GDP of the following in the multiplier model, using Table 28-1 where possible:
a. An increase in investment (I) of $100 billion
b. A decrease in government purchases ( G) of $50 billion
c. An increase in foreign output which increased exports by $10 billion
d. A depreciation of the exchange rate that raised exports by $30 billion and lowered imports by $20 billion at every level of GDP
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Table 311 that imports increase with GDP MPC 067 MPS 033 MPm 010 The spending multip... View full answer
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