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Vivio
Jun 1, 2011, 09:45 AM
Assume that a 1$ increase in exports increases GDP by 2$, and a 1$ increase in income increases import spending by 0,15$. In this case a 500$million increase in exports will increase net exports by:

A:650 mill
B: 350 mill.
C: 150 mill
D: 500 mill

Is B the right answer?

Thank you !