Suppose exports are $200 and imports are given by IM = 0.2Y. At what level of national income will net exports equal zero?
A)$1000
B)$1250
C)$0
D)$200
E)$250

Name: Suppose exports are $200 and imports are given by IM = 0.2Y. At what level of national income will net exports equal zero? A)$1000 B)$1250 C)$0 D)$200 E)$250
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Question

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Net exports equal zero when exports equal imports. Given exports are $200 and imports are 0.2Y, set 200 = 0.2Y. Solving for Y gives Y = 1000.

Suppose Exports Are $200 and Imports Are Given by IM