If Adding Net Exports to C + I + G

question 73

Multiple Choice

If adding net exports to C + I + G causes the expenditure line to shift up in a parallel way, it implies that

• A)imports and exports are not sensitive to changes in income.
• B)both exports and imports are sensitive to changes in income.
• C)exports are sensitive to changes in income.
• D)imports are sensitive to changes in income.
• E)imports and exports have an uncertain effect on income.

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders but has not retired, often used for reissuing or as a strategic financial move.

Mortgage Notes

Legal documents representing a promise to pay a specific amount of money, secured by a mortgage on property.

Investment Contract

In securities law, a type of security encompassing any contract by which an investor invests in a common enterprise with an expectation of profits solely from the efforts of persons other than the investor.

Section 5

A reference that needs context for accurate definition, often related to specific laws or regulations depending on the document it is cited in.