What Would Be the Impact on Aggregate Demand (AD)if Both

question 152

Multiple Choice

What would be the impact on aggregate demand (AD) if both imports and exports fell?

• A)AD would fall if exports fell more than imports.
• B)AD would decrease.
• C)AD would increase.
• D)AD would rise if exports fell more than imports.

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Definitions:

Decision Tree Analysis

A graphical representation of possible solutions to a decision based on different conditions, often used in business to strategize investments or processes.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows associated with an investment, minus the initial investment cost.

Risk

Exposure to the chance of loss or damage, often evaluated in financial terms for its potential impact on investment returns.

Sensitivity Analysis

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.