Imports

question 16

Multiple Choice

Imports

• A) increase the size of the multiplier because imports make disposable income less than real GDP.
• B) decrease the size of the multiplier because spending on imports does not increase real GDP in the domestic nation.
• C) increase the size of the multiplier because imports are paid for by exports.
• D) decrease the size of the multiplier because imports lead to an increase in taxes and government purchases.

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Definitions:

Horizontal Coordination

An organizational strategy that involves the collaboration and communication across different departments or units to achieve common goals.

Vertical Coordination

The organization and integration of the successive stages of production and distribution within an industry.

Top-Down Coordination

An organizational management style where decisions and policies are made at the highest level and passed down through the hierarchy to lower-level staff.

Differentiation Strategy

A strategy that helps companies succeed by differentiating their product in order to persuade customers to pay more for it.