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:

Profit Margin

The percentage of revenue remaining after all expenses have been deducted from sales.

Return On Investment

Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested, expressed as a percentage.

Investment Centre

A division or unit within a company that is responsible for its own revenues, expenses, and assets, and is evaluated based on its return on investment.

Performance Evaluation

An assessment process where an individual's or team's work outputs and efficiency are measured and reviewed against set goals or criteria.