An Increase in the Incomes of the Countries That Purchase

question 112

Multiple Choice

An increase in the incomes of the countries that purchase U.S.-made products will cause a(n) _____ in the _____ U.S.-made products.

• A) decrease; aggregate demand for
• B) increase; short-run aggregate supply of
• C) increase; aggregate demand for
• D) decrease; short-run aggregate supply of

---

Definitions:

Letter Of Credit

A written statement by a bank that money will be paid, provided conditions specified in the letter are met.

Factored Inventory Loan

A type of financing where a company borrows money against the value of its inventory, which is often controlled or managed by the lender.

Line Of Credit

A financial arrangement between a lender and a borrower that allows the borrower to draw funds up to a predefined limit as needed.

Operating Cycle

The operating cycle is the duration it takes for a business to convert its inventory and other inputs into cash through sales, encompassing the production and sales process.