sharin2738 sharin2738

24-05-2023
Business

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15. Assume that Net Exports, NX, is currently in a substantial deficit. Will the intercept of the AE, function rise, fall, or stay the same if the size of the trade deficit falls but remains negative?
The intercept of the AEP function will stay the same because there is no impact on the intercept of the AE function as its independent of net exports.

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