International trade tends to lower the value of the multiplier because

a. imports fall as GDP increases.
b. net exports fall as GDP increases.
c. net exports tend to rise as GDP increases.
d. exports fall as GDP increases.


b

Economics

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Use consumer indifference curves and budget lines to illustrate the effects of an increase in income for a normal good and an inferior good (use two graphs). Be sure your diagrams are fully and correctly labeled.

What will be an ideal response?

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____ are unexpected temporary events that can either increase or decrease short-run aggregate supply

a. Profit effects b. Volatilities c. Supply shocks d. Misperception effects

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a. True b. False Indicate whether the statement is true or false

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