Refer to the Graph Shown

question 68

Multiple Choice

Refer to the graph shown. What will reduce the trade deficit?

• A)The AD curve shifts to the left.
• B)The SAS curve shifts down.
• C)The WAS curve shifts up.
• D)All the answers are correct.

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Definitions:

Treasury Stock

Represents shares that were previously issued and outstanding but have been repurchased by the company and are held in its treasury.

Cash Flow Statement

A financial statement that details the inflows and outflows of cash for an entity over a specific period, categorizing them into operations, investing, and financing activities.

Indirect Method

a financial reporting approach used to generate a cash flow statement, where net income is adjusted for changes in assets and liabilities that affect cash but not income.

Financing Activities

Transactions and events where cash flows result from raising capital and repaying debts, critical for understanding the company’s financial health.