When Government Spending And Net Exports Are Added Into The Keynesian Model

(Correct Answer Below)

When Government Spending And Net Exports Are Added Into The Keynesian Model

A. the_ 45-degree curve shifts upward. B. the aggregate expenditures function shifts. C. the slope of the aggregate expenditure function rises. D. there is only a movement along the aggregate expenditure curve. Which of the following statements is true concerning the foreign sector in the simple Keynesian_ model? A. Imports are not used in the model since they represent the spending on foreign goods by the home_ country's citizens and firms. B. Exports are not included as expenditures since they are goods that the home nation ships overseas. C. Exports and imports depend on foreign and domestic incomes. D. Net exports are autonomous.
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1) B. the aggregate expenditures function shifts. 2) D. Net exports are autonomous.
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