The table below shows national income and imports in billions of dollars. Assume that the level of export is $300 billion.

National Income (Y)

Imports (IM)

Net Exports (X-IM)

100

85

215

200

120

180

300

155

145

400

190

110

500

225

75

600

260

40

700

295

5

800

330

-30

1. Compare the level of net export for each level of national income and fill in the table.
2. Plot the net export function on a scale diagram and explain why is it downward sloping.
3. What is the marginal propensity to import? Explain
4. Suppose oneof the Canadian major partners experiences a significant recession explain how this affects the net export function in your diagram?