An increase in U.S. exports because of increasing foreign incomes is _________in the United States.
A) an increase in autonomous expenditure
B) an increase in induced expenditure
C) a decrease in induced expenditure
D) a decrease in autonomous expenditure

Question

Quizplus · Accepted Answer

An increase in U.S. exports as a result of rising foreign incomes is considered an increase in autonomous expenditure because it is not directly tied to changes in domestic income or production levels. Instead, it reflects changes in the external environment, such as foreign demand and economic conditions.

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