Refer to the information. International trade in this case:
Answer the question on the basis of the following information for a private open economy. The letters Y, C, I g , X, and M stand for GDP, consumption, gross investment, exports, and imports respectively. Figures are in billions of dollars.
A. has an expansionary effect on GDP.
B. has a contractionary effect on GDP.
C. has no effect on GDP.
D. is causing inflation in this economy.
B. has a contractionary effect on GDP.
You might also like to view...
In the money market, if real GDP increases, then the demand for money ________ and the equilibrium nominal interest rate ________
A) decreases; rises B) decreases; falls C) increases; falls D) increases; rises E) increases; does not change
The labor force participation rates of men have gradually increased since 1948
Indicate whether the statement is true or false