Other Things Equal, If a Change in the Tastes of Canadian

question 43

Multiple Choice

Other things equal, if a change in the tastes of Canadian consumers causes them to purchase more foreign goods at each level of Canadian GDP:

• A)unemployment will decrease domestically.
• B)Canadian GDP will fall.
• C)inflation will occur domestically.
• D)Canadian real GDP will rise.

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Definitions:

Salvage Value

The presumed value for resale of an asset at life’s operational end.

Depreciation

The methodical reduction of the recorded cost of a fixed asset to allocate its expense over its useful life.

Capital Expenditures

Resources deployed by an organization to buy or enhance hard assets such as premises, manufacturing facilities, or devices.

Revenue Expenditures

Costs that are expensed immediately and relate to the maintenance and repair of fixed assets or to the costs of the goods sold.