Which of the Following Best Explains What Happens When a Business

question 56

Multiple Choice

Which of the following best explains what happens when a business firm purchases a drill press manufactured in Germany?

• A)There will be an increase in exports.
• B)There will be an increase in import spending.
• C)There will be an increase in investment expenditures.
• D)There will be an increase in both investment expenditures and import spending.
• E)There will be a decline in investment expenditures and an increase in import spending.

---

Definitions:

Escalator Clauses

Provisions in a contract that allow for automatic adjustments in certain conditions, such as price or wage increases, based on predefined criteria like inflation rates.

Compensation Rates

The amount of pay or benefits that an employee receives from their employer for their work.

Internal Equity

The practice of ensuring that employees are compensated fairly in relation to one another within the same organization.