Which of the Following Will Always Cause a Decrease in Net

question 30

Multiple Choice

Which of the following will always cause a decrease in net exports?

• A) A decrease in government spending.
• B) A decrease in imports.
• C) A decrease in investment.
• D) A decrease in the real exchange rate.
• E) An increase in domestic output.

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Definitions:

P-Value

Assuming the null hypothesis is applicable, it refers to the chance of recording test results that are at least as notable as the ones actually experienced.

Level Of Significance

The probability of rejecting the null hypothesis when it is actually true, often denoted by alpha (α).

Null Hypothesis

A default hypothesis that there is no significant difference or effect, tested against the alternative hypothesis.