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    Question

    In an economy, ceteris paribus, the value of imports

    decreased by Rs.100, what is the change in the value of output
    A Decreased by 100 Correct Answer Incorrect Answer
    B Increased by 100 Correct Answer Incorrect Answer
    C Insufficient information Correct Answer Incorrect Answer
    D Increase by more than 100 Correct Answer Incorrect Answer

    Solution

    Y = C + I + G + Export – Import Decrease in Imports will lead to increase in output by same amount.

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