Assume that the U.S. dollar depreciates against the Japanese yen. What is the impact on aggregate expenditures and income? Aggregate expenditure increases and income decreases. Both increase. Aggregate expenditure decreases and income increases. Both decrease.
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- What will happen to the net exports of Mexico when there is an increase in income in the United States? Ⓒ Net exports will increase because exports will increase. Net exports will decrease because exports will decrease. ONet exports will decrease because imports decrease. Net exports will increase because imports increase.3. How reasonable is it for every country to follow policies aimed at increasing net exports?What is the predicted relationship between the value of a country’s imports and its national income? What is the predicted relationship between its trade balance and its national income? Plz do fast .
- In the equation Y = C + I + G + Nx, sensitize the citizens aboutthe mechanism under which net exports come up.Ceteris paribus, how does a recession in the United States affect U.S. net exports?If US exports increased and imports remained constant, this would... O No change in GDP Decrease GDP Increase Net Exports Increase Government Purchases
- assess how an increase in import prices and an increase in export prices will affect th sa economy.How would the following transactions affectU.S. exports, imports, and net exports?a. An American art professor spends the summertouring museums in Europe.b. Students in Paris flock to see the latest movie fromHollywood.c. Your uncle buys a new Volvo.d. The student bookstore at Oxford University inEngland sells a copy of this textbook.e. A Canadian citizen shops at a store in northernVermont to avoid Canadian sales taxesWhat happens to the level of net exports in an economy when income in that economy increases? What happens to the level of net exports in an economy when income in other economies increases?
- If the value of a nation’s imports exceeds the valueof its exports, which of the following is NOT true?a. Net exports are negative.b. GDP is less than the sum of consumption,investment, and government purchases.c. Domestic investment is greater than nationalsaving.d. The nation is experiencing a net outflow ofcapital.Discuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. a. Charles buys a second-hand textbook from Tim. b. When Charles bought the book, he paid Sarah $10 to collect it from Tim c. Thomas buys a new house d. Your firm sells meat to Indonesia e. The fish and chips shop down the road buys fish to make meals for diners f. The same shop buys a deep fryer to fry fish for meals.Durable Goods Consumption Expenditures $350 Nondurable Goods Consumption Expenditures $1,000 Services Consumption Expenditures $3,000 Business Fixed Investment $1,500 Change in Inventories -$100 Government Consumption Expenditures and Gross Investment $2,000 Exports $1,000 Imports $700 Refer to the table shown here. What is the value of net exports or the trade balance? Selected Answer: -$300. Answers: $300. -$300. $1,700. -$1,700.