Which of the Following Would Decrease Net Exports in the United

question 141

Multiple Choice

Which of the following would decrease net exports in the United States?

• A)An American party planner purchases 350 piñatas from Mexico.
• B)The government of Mexico purchases 2,000 Dell laptop computers from the United States.
• C)A Mexican citizen purchases 100 shares of stock in IBM.
• D)The U.S.government donates $25 million to Mexico to help victims of a hurricane in Mexico.

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Definitions:

Income Groupings

Categorizations of individuals, households, or countries based on income levels, used for statistical and analytical purposes.

Consumption Expenditures

Spending by households on goods and services, with the exception of purchases of new housing.

Effective Marginal Tax Rate

The rate at which an additional dollar of income gets taxed, taking into account the impact of all applicable tax brackets.