An Increase in Foreign Income,other Things Being Equal,is Assumed to Cause

question 113

Multiple Choice

An increase in foreign income,other things being equal,is assumed to cause the net export (NX) function to

• A)shift parallel upward.
• B)shift parallel downward.
• C)pivot downward.
• D)pivot upward.
• E)remain stationary.

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Definitions:

Salvage Value

The anticipated remaining value of an asset at the conclusion of its operational life.

Payback Period

The length of time required to recover the initial investment in a project, without accounting for the time value of money.

Gross Revenues

The total sales revenue of a company without any deductions.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.