In the Keynesian balance of payments model A. The trade balance is not affected by income changes. B. An increase in income will increase exports. C. An increase in income will increase imports. D. An increase in income will increase the trade balance. E. An increase in income will increase both imports and exports.

In the Keynesian balance of payments model A. The trade balance is not affected by income changes. B. An increase in income will increase exports. C. An increase in income will increase imports. D. An increase in income will increase the trade balance. E. An increase in income will increase both imports and exports.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 1CQQ

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