Figure 20-2 -Which of the Following Explains the Movements in Figure 20-2

question 8

Multiple Choice

Figure 20-2

-Which of the following explains the movements in Figure 20-2?

• A)an increase in U.S.imports
• B)a decrease in U.S.exports
• C)an increase in U.S.exports
• D)a decrease in U.S.net exports

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Definitions:

Nominal Rate

The interest rate stated on a loan or investment agreement, not accounting for inflation or compounding effects.

Semi-Annual Payments

Payments made twice a year, often used in the context of loan repayments or bond interest payments.

Nominal Rate

The stated interest rate of an investment or loan, which does not account for compounding or inflation effects.

Monthly Compounded

A method where interest adds to the principal sum at the end of each month, allowing for the interest in the next month to be based on the new total.