U.S.net Export Spending Rises When

question 162

Multiple Choice

U.S.net export spending rises when

• A)the price level in the United States rises relative to the price level in other countries.
• B)the growth rate of U.S.GDP is slower than the growth rate of GDP in other countries.
• C)the value of the U.S.dollar increases relative to other currencies.
• D)the inflation rate is higher in the United States relative to other countries.

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Definitions:

Incremental Cost Approach

A method used to analyze the financial impact of additional costs incurred when making business decisions.

Discount Rate

In discounted cash flow (DCF) analysis, this rate is applied to calculate the present value of anticipated cash flows.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Discount Rate

In finance, it is the interest rate used to determine the present value of future cash flows. In monetary policy, it's the rate at which commercial banks borrow from the central bank.