Given the marginal propensity to consume = .75 and marginal propensity to import = .15, then we should expect (ceteris paribus) that an autonomous reduction of net exports = - $100 will Group of answer choices reduce GDP by $400. reduce GDP by $50. not affect the level of GDP. reduce GDP by $100. reduce GDP by $250.

Given the marginal propensity to consume = .75 and marginal propensity to import = .15, then we should expect (ceteris paribus) that an autonomous reduction of net exports = - $100 will Group of answer choices reduce GDP by $400. reduce GDP by $50. not affect the level of GDP. reduce GDP by $100. reduce GDP by $250.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 3DQ

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