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Author Question: The ________ effect illustrates the fact that imports affect exports and exports affect imports. (Read 163 times)

mynx

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Question 1

Assume that a $1.00 increase in exports increases GDP by $3.00, and a $1.00 increase in income increases import spending by $0.15. In this case, a ________ million increase in exports will increase net exports by $550 million.


◦ $550
◦ $700
◦ $1,000
◦ $1,350

Question 2

The ________ effect illustrates the fact that imports affect exports and exports affect imports.


◦ net export
◦ crowding out
◦ co-dependency
◦ trade feedback


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Marked as best answer by mynx on Apr 19, 2019

jesse.fleming

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