If Government Policy Encouraged Households to Save More at Each

question 73

Multiple Choice

If government policy encouraged households to save more at each interest rate,then

• A)the real exchange rate and net exports would rise.
• B)the real exchange rate and net exports would fall.
• C)the real exchange rate would rise and net exports would fall.
• D)the real exchange rate would fall and net exports would rise.

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Definitions:

Perpetual Inventory

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Periodic System

An accounting method used for tracking inventory where updates to the inventory account are made periodically, typically at the end of an accounting period.

LIFO Inventory

A method of inventory valuation where the last items to be added to the inventory are the first ones to be used or sold, assuming that the cost of goods sold is based on the most recent prices.

Inventory Balance

The total value of a company's inventory at the end of an accounting period, including raw materials, work-in-progress, and finished goods.