An Autonomous Increase in S from a Condition of Equilibrium

question 12

Multiple Choice

An autonomous increase in S 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 into surplus
• B)falling and its trade balance turning into surplus
• C)falling and its trade balance turning into deficit
• D)rising and its trade balance turning into deficit

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Definitions:

Interest Payment

The amount paid by a borrower to a lender as a charge for borrowing money, typically expressed as an annual percentage of the principal.

Financing Activity

Transactions and events where cash is raised for investing in the business or repaying funds borrowed by the company, supplied through equity or debt.

Income Ratio

A metric used to evaluate the performance of a company by comparing income to other financial figures, often referred to as a profitability ratio.