An autonomous increase in imports has ________ effect on equilibrium income.

CA Foundation · Business Economics · PYQS · January 2026
An autonomous increase in imports has ________ effect on equilibrium income.
(A) A. Expansionary
(B) B. Contractionary
(C) C. Balanced
(D) D. No

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Contractionary

Topics: Determination of National Income

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