1 (b)The Keynesian Cross Expenditure,E 3.which Actual expenditure shifts planned expenditure downward. △NX Planned expenditure 4.and lowers income. 45° Income, output,Y (a)The Net-Exports Schedule (c)The /S*Curve Exchange rate,e Exchange rate,e 5.The IS*curve summarizes these changes in the goods market equilibrium. 1.An e2 increase in the exchange rate. e e 2.lowers net exports,. : △NX 5* NX(e2)+-NX(e;) Net Y+ 一Y Income, exports, output,y 1e4 NXslide 4 1