Table 36-2
?
Domestic
?
?
?
GDP
Expenditure
?
Exports
Imports
Total Expenditures
(Y)
C+ I + G
(X)
(IM)
C+ I + G + (X?IM)
$2,500
$3,100
$650
$250
_____
3,000
3,400
650
300
_____
3,500
3,700
650
350
_____
4,000
4,000
650
400
_____
4,500
4,300
650
450
_____
5,000
4,600
650
500
_____
5,500
4,900
650
550
_____
In Table 36-2, assume that exports rise to $900. How large is the multiplier?
A. 5
B. 4
C. 2.5
D. 2
Answer: D
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