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Author Question: The trade feedback effect illustrates the fact that (Read 77 times)

jerry coleman

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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 $1,000 million increase in exports will increase net exports by


◦ $550 million.
◦ $700 million.
◦ $1,000 million.
◦ $1,350 million.

Question 2

The trade feedback effect illustrates the fact that


◦ an increase in U.S. economic activity leads to a decrease in the economic activity of other countries.
◦ U.S. imports depress the imports of other countries.
◦ imports and exports are unrelated to one another.
◦ imports affect exports and exports affect imports.


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Marked as best answer by jerry coleman on Apr 19, 2019

Eunice618

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jerry coleman

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Eunice618

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