The Figure Given Below Shows the Aggregate Expenditures Function of an Economy

question 65

Multiple Choice

The figure given below shows the aggregate expenditures function of an economy.
Figure 9.5

-Refer to Figure 9.5. Which of the following statements is true?

• A) Autonomous net exports equal the distance between A and C.
• B) Autonomous consumption is equal to the distance between A and C.
• C) There is a deficit in the merchandise and services account.
• D) Exports exceed imports for the country in question.
• E) Autonomous consumption is equal to the distance between 0 and C.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, working to create wealth through investment or production.

Operating Cash Flows

Cash generated from a company's normal business operations, indicating its ability to generate revenue.

Total Opportunity Cost

The overall cost of choosing one option when the value of the best alternative option is considered.

Total Carrying Costs

The total expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.