Other Things Being Equal, a Decrease in an Economy's Exports

question 145

Multiple Choice

Other things being equal, a decrease in an economy's exports will

• A)increase domestic aggregate expenditures and the equilibrium level of GDP.
• B)decrease domestic aggregate expenditures and the equilibrium level of GDP.
• C)have no effect on domestic GDP, because imports will offset the change in exports.
• D)increase the amount of imports consumed by the private sector.

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Definitions:

Non-Controlling Interest (NCI)

The portion of equity ownership in a subsidiary not attributable to the parent company, reflecting the minority shareholders' share of the subsidiary's net assets and profits.

Statement Of Financial Position

A financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time, also known as a balance sheet.

IFRS 3

An International Financial Reporting Standard that deals with the accounting treatment for all business combinations.

Business Combinations

Transactions or events in which one entity gains control over one or more other businesses, often resulting in consolidations or acquisitions.