Open-Market Purchases

question 238

Multiple Choice

Open-market purchases

• A) increase the price level and real GDP.
• B) decrease the price level and real GDP.
• C) increase the price level and decrease real GDP.
• D) decrease the price level and increase real GDP.

Understand the economic and job impacts of international business practices, such as insourcing and global sourcing.

Recognize the role and impact of global institutions like the World Trade Organization (WTO) on international trade.

Understand the implications of tariffs, quotas, and free trade agreements on international business.

Recognize the importance of political risk analysis in international business planning.

---

Definitions:

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made.

Selling Price

The amount of money charged for a product or service, or the sum obtained from the sale of an asset.

Receivables

Money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Ending Cash Balance

The amount of cash a company has available at the end of a financial period.