If Net Exports Are Reduced, the Expenditure Schedule Will Shift

question 63

Multiple Choice

If net exports are reduced, the expenditure schedule will shift

• A)downward and equilibrium real GDP will rise.
• B)upward and equilibrium real GDP will rise.
• C)downward and equilibrium real GDP will fall.
• D)upward and equilibrium real GDP will fall.

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Definitions:

Liable

Subject to being held accountable, usually in a legal or financial context, for fulfilling obligations or compensating for an incurred loss or damage.

Constructive Trust

A legal concept created by a court to rectify a situation where someone has wrongfully gained property at another's expense.

Agency Relationship

An agency relationship occurs when one party, the agent, is authorized to act on behalf of another party, the principal, in dealings with third parties.

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Instances of violation or non-compliance with laws, regulations, contracts, or standards.