Equilibrium national income in an open economy is determined at that point where S + T +

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Equilibrium national income in an open economy is determined at that point where S + T + M = l + C + X. Other things remaining the same, suppose marginal propensity to import of the economy rises. Then it will cause

(a) the withdrawal line to become steeper.

(b) _the withdrawal line to rise parallel to the existing line.

(c) the withdrawal line to fall parallel to the existing line.

(d) the injection line to rise upwards parallel to the existing one.

(e) the injection line to fall downward parallel to the existing one.

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Macroeconomics

ISBN: 9780124080669

2nd Edition

Authors: Debes Mukherjee

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Question Posted: Nov 15, 2024 06:00 AM

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Equilibrium national income in an open economy is determined at that point where S + T +

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Macroeconomics

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