Net Exports of Goods and Services Are Equal to the Value

question 85

Multiple Choice

Net exports of goods and services are equal to the value of

• A)domestic consumption minus the value of exports.
• B)domestic consumption minus the value of imports.
• C)exports plus the value of imports.
• D)imports minus the value of exports.
• E)exports minus the value of imports.

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Definitions:

Debt/Equity Ratio

A gauge for comparing the mix of a company's funding through shareholders' equity versus debt, frequently applied to understand the company's use of financial leverage.

Retained Earnings

Retained earnings represent the portion of net income left after dividends have been paid to shareholders, which is then reinvested in the business.

Static Theory

A concept in economic theory that assumes conditions remain constant over time.

Capital Structure

The mix of debt and equity financing that a company uses to fund its operations and growth.