Answer to Question #132176 in Macroeconomics for Paulinah

Question

which of the following is correct about export in the Keynesian model?
1. increase the multiplier
2. increase due to a depreciation in the SA rand against its major trading partners.
3. increase as domestic interest rates decrease.
4. increase when the level of domestic income increases.

Answer 1

2 because of a waek currency the domestic products becomes cheaper on global market