- Please explain WHY the answer for question 16 is B.

- Please explain WHY the answer for question 38 is B.

- Please explain WHY the answer for question 57 is E.

- Please explain WHY the answer for question 65 is A. - Please explain WHY the answer for question 66 is D.

- Please explain WHY the answer for question 67 is B.

- Please explain WHY the answer for question 69 is D.

- Please explain WHY the answer for question 75 is B.

- Please explain WHY the answer for question 100 is B.

- Please explain WHY the answer for question 109 is C.

- Please explain WHY the answer for question 110 is E. THANK YOU

16) When determining the AE function for an open economy with government, it is generally assumed that as real national income

A) increases, exports will decrease.

B) increases, net exports will decrease.

C) increases, imports will decrease.

D) decreases, net exports will decrease.

E) decreases, exports will decrease.

Answer: B

The table below shows national income and imports. The level of exports is fixed at $300. All figures (in table and questions) are in millions of dollars.

Income (Y)	Imports (IM)	Net Exports (NX)
2000	150	a
3000	250	b
4000	350	c
5000	450	D

TABLE 22-1

38) Refer to Table 22-1. The net export function can be expressed as

A) NX = 300 - 0.1Y

B) NX = 350 - 0.1Y

C) 0 = 300 - IM

D) 0 = 300 - 0.5Y

E) NX = 350 - 0.5Y

Answer: B

57) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 60 + 0.43Y, I= 150, G = 260, T = 0, X = 90, IM = 0.06Y. The vertical intercept of the AE function is

A) 60.0.

B) 210.0.

C) 300.0.

D) 414.4.

E) 560.0.

Answer: E

The diagram below shows desired aggregate expenditure for a hypothetical economy. Assume the following features of this economy:

marginal propensity to consume (mpc) = 0.75

net tax rate (t) = 0.20

no foreign trade

fixed price level

all expenditure and income figures are in billions of dollars.

450 AE Desired Aggregate Expenditure (AE) 250 175 I+ G 100 0 Actual National Income (Y)AE = Y AE1 AEO Desired Aggregate Expenditure 450 Yo Y1 Actual National Income