Foreign Repercussions of Changes in Domestic Spending May Cause

Foreign repercussions of changes in domestic spending may cause:

A) the GDP gap to be larger than the recessionary gap.
B) the equilibrium income to increase by an amount equal to the change in net exports.
C) the actual spending multiplier to be larger than the reciprocal of the marginal propensity to save plus the marginal propensity to import.
D) equilibrium income to rise by a smaller amount than evidenced by the multiplier effect of autonomous spending increases.
E) real GDP to be larger than potential GDP.

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