If Net Exports Are Reduced, the Expenditure Schedule Will Shift

question 63

Multiple Choice

If net exports are reduced, the expenditure schedule will shift

• A)downward and equilibrium real GDP will rise.
• B)upward and equilibrium real GDP will rise.
• C)downward and equilibrium real GDP will fall.
• D)upward and equilibrium real GDP will fall.

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Definitions:

Unrealized Losses

Losses that result from holding on to an asset that has decreased in price but has not yet been sold by the owner.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, expenses, gains, and losses.

Trading Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and derivatives held by an institution or individual, primarily for the purpose of short-term trading and profiting from market movements.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.