When U.S. Real GDP Increases, U.S. Imports

question 1

Multiple Choice

When U.S. real GDP increases, U.S. imports

• A)increase by more than the change in real GDP.
• B)decrease by less than the change in real GDP.
• C)increase by less than the change in real GDP.
• D)decrease by the same amount.
• E)increase by the same amount.

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Definitions:

Plums

A type of fruit that belongs to the genus Prunus, known for their sweet taste and juicy texture, often consumed fresh, dried, or in various culinary dishes.

Expected Value

The anticipated value for a given investment or decision in probability and statistics, calculated as the sum of all possible values each multiplied by the probability of occurrence.

Risk Trading

The act of exchanging financial instruments or commodities with a variable level of risk, often in the hope of gaining a higher return.

Adverse Selection

A situation in economics and insurance where parties with higher risk are more likely to engage in an agreement, leading to unbalanced and unfavorable outcomes for one of the parties.