In an Open Economy, an Increase in (G − T)

question 154

Multiple Choice

In an open economy, an increase in (G − T) will

• A)decrease (X − IM).
• B)increase (X − IM).
• C)leave (X − IM) unchanged.
• D)have an unpredictable effect on (X − IM).

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Definitions:

Account Receivable

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

Fraudulently

Fraudulently involves deceitful conduct or misrepresentation intended to achieve unjust gain or to deprive another of a right.

Bankruptcy

A legal status of a person or entity that cannot repay the debts it owes to creditors.

Implied Warranty

A warranty created by operation of law.