In a simple macro model, it is generally assumed that a country's exports
A)and imports are induced.
B)are always equal to investment.
C)are autonomous whereas imports are induced.
D)are induced whereas imports are autonomous.
E)and imports are autonomous.

Question

Quizplus · Accepted Answer

In a simple macroeconomic model, exports are typically considered autonomous because they depend on foreign demand, while imports are induced as they depend on domestic income levels.

In a Simple Macro Model, It Is Generally Assumed That