In a Simple Macro Model, It Is Generally Assumed That

question 17

Multiple Choice

In a simple macro model, it is generally assumed that a country's exports

• A)and imports are induced.
• B)are always equal to investment.
• C)are autonomous whereas imports are induced.
• D)are induced whereas imports are autonomous.
• E)and imports are autonomous.

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Definitions:

Short-term Sources

refer to financial resources or loans that are expected to be repaid within a year.

Permanent Assets

Also known as fixed assets; these are long-term resources owned by a business, like property, plant, and equipment, expected to provide value for several years.

Machinery

Machines collectively, especially those used in production or some form of labor.

Acquisitions

The act of obtaining control of another company or its assets through purchase, which can facilitate growth and expand market share.