The Wide-Spread Recessions of 2007-2009 Caused a Reduction in German

question 56

Multiple Choice

The wide-spread recessions of 2007-2009 caused a reduction in German exports and reduction in net exports for Germany, shifting the German aggregate demand curve. Which of the following factors would also cause a reduction in Germany's net exports and shift Germany's aggregate demand curve?

• A)real GDP in Germany increasing faster than real GDP in other countries
• B)a decrease in the exchange rate of the Euro relative to other currencies
• C)a decrease in the price level in Germany
• D)an increase in the price level in Germany

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Definitions:

ASPE

Accounting Standards for Private Enterprises, a set of accounting practices and principles for private companies in Canada.

Equity Basis

An accounting method where investments are recorded at the original cost plus or minus any subsequent changes in the value of the invested assets, often used in consolidation.

Cost Basis

The original value of an asset for tax purposes, usually the purchase cost, adjusted for stock splits, dividends, and return of capital distributions.

Unanimous Consent

An agreement method where all parties involved must agree entirely on a decision or action.