Figure 36-7 ​

question 8

Multiple Choice

Figure 36-7
​
-In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X − IM) for an open economy.Which of the following would cause a movement from B to A?

• A)A recession in Southeast Asia
• B)An economic expansion in Japan
• C)A depreciation of the dollar
• D)An increase in the interest rate

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Definitions:

Issue Of Bonds

The process by which a borrower issues bonds to lenders or investors as a way of raising capital.

Amortization Expenses

The gradual write-off of the initial cost of intangible assets over a period of time, reflecting their consumption, expiration, or obsolescence.

DPS

Stands for Dividends Per Share, indicating the total dividends paid out by a company per share of its stock.

EPS

A financial ratio indicating how much money a company makes for each share of its stock, also known as earnings per share.