Page 117 - Macroeconomics. book docx_Neat
P. 117
If exports increase by 50 while imports remain constant, national income increases by
50, assuming other variables remain unchanged.
Multiple Choice Questions (MCQ)
1. The foreign sector refers to
A. Domestic production only
B. Government activities
C. Transactions with the rest of the world
D. . Household consumption
Answer: A
2. Exports are:
A. Goods bought from abroad
B. Goods sold abroad
C. Domestic consumption
D. Government spending
Answer: B
3. Imports reduce:
A. Domestic spending
B. Foreign income
C. National income
D. Exports
Answer: A
4. Net exports equal:
A. M - X
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