Which of the Following Statements Represents a Correct and Sequentially

question 27

Multiple Choice

Which of the following statements represents a correct and sequentially accurate economic explanation?

• A) The (U.S.)dollar appreciates,net exports rise,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
• B) The interest rate falls,investment rises,total expenditures on goods and services rises,AD falls,and the AD curve shifts leftward.
• C) Wealth increases,consumption rises,total expenditures on goods and services rises,AD falls,and the AD curve shifts rightward.
• D) (Business)expectations about future sales become more positive,investment rises,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
• E) Foreign real national income rises,net exports rise,total expenditures on goods and services falls,AD rises,and the AD curve shifts rightward.

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Definitions:

Purchase Price

The amount paid to acquire an asset, including all costs directly attributable to bringing the asset to its intended use.

U.S.GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.

Research And Development

The systematic work undertaken by a company to increase the knowledge for developing new products or processes.

Internally Generated Intangibles

Non-physical assets, such as patents, trademarks, and copyrights, that are created within a company rather than acquired.