When net exports are included in the aggregate expenditure function, the spending multiplier
A)increases
B)decreases
C)is affected only if exports are greater than imports
D)is affected only if exports are less than imports
E)is affected only if exports are equal to imports

Question

Quizplus · Accepted Answer

The Answer of When net exports are included in the aggregate expenditure function, the spending multiplier
A)increases
B)decreases
C)is affected only if exports are greater than imports
D)is affected only if exports are less than imports
E)is affected only if exports are equal to imports

When Net Exports Are Included in the Aggregate Expenditure Function