Suppose a country's net exports equal 1.9 billion. Which of the following will happen if the volume of imports increases by 2 billion without any change in the volume of exports?
A) The country's net exports will be equal to 0.1 billion.
B) The country's net exports will become negative.
C) The country's net exports will be equal to 3.9 billion.
D) The country's net exports will be zero.
Question 2
If the multiplier in the economy is 3, the marginal propensity to save (MPS) must be
A) 3. B) 0.67. C) 0.33. D) 1.
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