An Increase in Net Export Spending Will Result in A(n)

question 58

Multiple Choice

An increase in net export spending will result in a(n)

• A) increase in aggregate demand.
• B) increase in aggregate supply.
• C) decrease in aggregate supply.
• D) decrease in aggregate demand.

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Definitions:

Put Option

A financial derivative that gives the holder the right, but not the obligation, to sell a specified quantity of an underlying asset at a set price within a specified timeframe.

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Market Price

The ongoing price point for buying or selling a service or asset in the market.

Put Option

An agreement that allows the holder to sell a predetermined quantity of a particular asset at an agreed-upon price before a certain deadline, without being required to do so.