Question

If investment expenditure increased by €50 billion while GDP remained the same, which of the following

could have occurred, all else being the same?
a. Consumption spending decreased by €50 billion.
b. Exports increased by €50 billion.
c. Imports decreased by €50 billion.
d. Net exports increased by €50 billion.

Answer 1

Answer:

A. exports exceed imports by $50 billion.

Step-by-step explanation:

GDP = Consumption spending + Investment + Government Spending + Net

Export

Net Export = Export - Import

1.2 = 0.69 + 0.2 + 0.26 + Net Export

Net Export = $0.05 trillion

Net Export was $50 billion. Since net export is positive, exports exceeds

import by $50 billion.

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Q

Step-by-step explanation:

Correct me if I'm wrong