If Our Exports Are $2

question 188

Multiple Choice

If our exports are $2.2 billion and our imports are $2.7 billion,

• A) U.S. national saving is too high.
• B) the United States is borrowing from the rest of the world.
• C) the United States is lending to the rest of the world.
• D) U.S. investment must decrease.

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Definitions:

Debit Side

The left side of a ledger account that is used to record increases in assets, expenses, and decreases in liabilities, equity, and income.

Asset Accounts

Ledger accounts that record a company's owned resources with economic value expected to provide future benefits.

Compound Entry

An accounting entry that involves more than two accounts, where there are multiple debits, credits, or both.

Three Accounts

A fundamental concept in accounting that typically refers to the three major financial statements: the balance sheet, income statement, and cash flow statement.