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Answer to Question #134606 in Macroeconomics for Valerie
Question #134606
Which of the following is correct about exports in the Keynesian model?
A. Increases the multiplier.
B. Increase due to a depreciation in the South African rand against its smajor trading partners.
C. Increase as domestic interest rates decreases.
D. Increase when the level of domestic income increases.
A. Increases the multiplier.
B. Increase due to a depreciation in the South African rand against its smajor trading partners.
C. Increase as domestic interest rates decreases.
D. Increase when the level of domestic income increases.
Expert's answer
Answer C. Increase as domestic interest rates decreases.
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