Which of the Following Scenarios Would Increase the Net Exports

question 53

Multiple Choice

Which of the following scenarios would increase the net exports component of aggregate expenditure?

• A) The dollar increases in value relative to other currencies.
• B) Countries in the European Union experience a long period of economic growth.
• C) A series of recalls for domestic automobiles shifts preferences towards foreign cars and trucks.
• D) The United States experiences a long period of economic growth.

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Definitions:

Focal Date

A specific point in time that serves as a reference or target for financial calculations or contractual obligations.

Loan Date

The specific date on which a loan agreement is signed, and the funds are disbursed to the borrower.

Plant Capacity

Plant capacity refers to the maximum output or production that a manufacturing facility can achieve under normal conditions.

Variable Costs

Costs that vary directly with the level of production or volume of output, in contrast to fixed costs.