Question 1
Algebraically, the relationship between imports and income can be written as
◦
IM =
Y/
m.
◦
Y =
mIM.
◦
IM =
m/
Y.
◦
IM =
mY.
Question 2
The level of U.S. exports depends directly on
◦ the level of income in the United States.
◦ the size of the spending multiplier in other countries.
◦ the size of the spending multiplier in the United States.
◦ the level of income in other countries.