Assuming MPC is 0.80, what effect, if any, would an increase of $100 billion of U.S. exports have on the U.S. level of national income?
a. No effect since the goods would be consumed abroad
b. National income increases by $100 billion
c. National income decreases by $100 billion
d. National income decreases by $500 billion
e. National income increases by $500 billion
E
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