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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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