An Autonomous Fall in M from a Condition of Equilibrium

question 14

Multiple Choice

An autonomous fall in M from a condition of equilibrium in national income and in the trade balance results in the nation's income:

• A)rising and its trade balance turning to deficit
• B)falling and its trade balance turning into surplus
• C)rising and its trade balance turning into surplus
• D)rising and the trade balance remaining in equilibrium

---

Definitions:

Criterion Validity

The extent to which a measurement is related to an outcome that it is supposed to predict, indicating the usefulness of the test.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and efficiency across various activities or products.

Established Criteria

Predefined standards or benchmarks used for decision-making or evaluation purposes.