U.S.net Export Spending Falls When

question 229

Multiple Choice

U.S.net export spending falls when

• A)the price level in the United States falls relative to the price level in other countries.
• B)the growth rate of U.S.GDP is faster than the growth rate of GDP in other countries.
• C)the value of the U.S.dollar decreases relative to other currencies.
• D)the inflation rate is lower in the United States relative to other countries.

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Definitions:

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the cost and liability of goods during transportation once they are shipped.

Freight Charges

Freight Charges are costs incurred in transporting goods from one place to another, often included as part of the cost of goods sold or inventory for businesses.

Perpetual Inventory

A method of inventory management where record keeping is updated continuously as transactions occur, providing a real-time view of stock levels.

Inventory Account

A financial account that tracks the cost of inventory a company has purchased to sell, including raw materials, work-in-progress, and finished goods.