Using the Standard 45-Degree Line Diagram, How Does a Decrease

question 2

Multiple Choice

Using the standard 45-degree line diagram, how does a decrease in net exports effect the expenditure schedule?

• A)It increases the slope of the expenditure schedule.
• B)It decreases the slope of the expenditure schedule.
• C)It shifts the expenditure schedule upward.
• D)It shifts the expenditure schedule downward.

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Definitions:

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits on a quarterly basis.

Dividend Income

Income received from owning shares of a company which pays out earnings to its shareholders.

Shares

Units of ownership interest in a corporation or financial asset, providing a portion of the profits to shareholders in the form of dividends.