According to the Net-Exports Effect,as the Price Level Falls Relative

question 125

Multiple Choice

According to the net-exports effect,as the price level falls relative to the rest of the world:

• A)foreigners buy fewer goods.
• B)foreigners buy more Australian goods.
• C)the aggregate demand curve shifts to the left.
• D)the aggregate demand curve shifts to the right.
• E)the supply of Australian-made goods increases.

---

Definitions:

Conservatism

An accounting principle that advises caution, directing accountants to choose methods and estimates that are least likely to overstate assets and income.

Fair Value Accounting

An accounting approach that measures and reports assets and liabilities at their estimated market prices.

Financial Crises

A situation where the value of financial institutions or assets drops significantly, often characterized by panicked selling and loss of confidence in the financial system.

Accounting Standards Codification

The collection and integration of the authoritative accounting standards for U.S. GAAP.