Which One of the Following Statements Is the MOST Accurate

question 22

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) A rise in domestic real income raises aggregate demand for home output.
• B) A rise in domestic real income decreases aggregate demand for home output because of the increase demand for import.
• C) A rise in domestic real income keeps aggregate demand for home output at the same level.
• D) It is difficult to tell whether a rise in domestic real income affects positively or negatively aggregate demand for home output.
• E) A rise in domestic real income decreases aggregate demand for home output because the CA is raised.

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Definitions:

Adequacy

The sufficiency of something in meeting a specific need or standard, often evaluated in terms of quality or quantity.

Consideration

The value promised to be transferred in a contract, making it legally binding.

Endorse

To give one's public approval or support to someone or something, or to sign a document thus validating it.

Bill of Exchange

A written, unconditional order by one party directing another party to pay a specified sum of money to a third party on demand or at a set date.