Consider the following table showing national income in billions of dollars. Assume that the marginal propensity to import is 20% and the level of exports is $60 billion. Calculate the level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Actual National Income (Y) (Billions of $) Net Exports (X-IM) (Billions of $) 200 400 600 800 1000 Now assume that the marginal propensity to import increases to 25%. Calculate the new level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Actual National Income (Y) (Billions of $) Net Exports (X-IM) (Billions of $) 200 400 600 800 1000 When we compare these two tables, we can see that for a given level of exports, the higher the marginal propensity to import, the the level of net exports will be at each level of income.
Consider the following table showing national income in billions of dollars. Assume that the marginal propensity to import is 20% and the level of exports is $60 billion. Calculate the level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Actual National Income (Y) (Billions of $) Net Exports (X-IM) (Billions of $) 200 400 600 800 1000 Now assume that the marginal propensity to import increases to 25%. Calculate the new level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Actual National Income (Y) (Billions of $) Net Exports (X-IM) (Billions of $) 200 400 600 800 1000 When we compare these two tables, we can see that for a given level of exports, the higher the marginal propensity to import, the the level of net exports will be at each level of income.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 3SQ
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