The Change in Import Spending Due to a Change in Domestic

question 101

Multiple Choice

The change in import spending due to a change in domestic real income is called:

• A)marginal propensity to save.
• B)marginal propensity to consume.
• C)marginal propensity to import.
• D)none of the above.

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Definitions:

Reserves

Funds or assets set aside to cover future expenses, losses, or liabilities.

Asset Revaluations

The process of adjusting the book value of a company's assets to reflect their current market values.

Stated Value

A value assigned to no-par value stock by the company's board of directors, used as a basis for accounting and financial reporting.

Common Stock

Equity ownership in a corporation, with claims on its earnings and assets being secondary to those of bondholders and preferred shareholders.