In the Long Run, If Imports Increase, Then Exports

question 226

Multiple Choice

In the long run, if imports increase, then exports

• A) will not change.
• B) will decrease.
• C) will also increase.
• D) will become zero.

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Definitions:

Cash Conversion Cycle

A measurement that calculates the duration required for a business to transform its inventory investments and additional resources into cash flows resulting from sales.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Accounts Payable

Accounts payable are amounts a company owes to suppliers for items or services purchased on credit; it is a current liability on the balance sheet.

Nominal Annual Cost

The cost of a product or service stated in current year prices without adjusting for inflation or deflation.