If Net Exports Become Less Sensitive to Changes in Exchange

question 121

True/False

If net exports become less sensitive to changes in exchange rates, the crowding-out effect of government spending will increase.

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Definitions:

Normal Balance

the side (debit or credit) on which increases to an account are recorded, based on the type of account (asset, liability, equity, revenue, or expense).

Contra-Asset

An account that offsets or reduces the balance of a related asset account, such as accumulated depreciation.

Allowance for Doubtful Accounts

An estimation recorded on financial statements reflecting the amounts expected to be uncollected from accounts receivable.