An Increase in Domestic Output Would Cause a ________ in Net

question 21

Multiple Choice

An increase in domestic output would cause a ________ in net exports and a ________ in the exchange rate.

• A)rise; rise
• B)rise; fall
• C)fall; rise
• D)fall; fall

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Definitions:

Asset Matching

A strategy used in financial planning to align investments with future liabilities, ensuring that cash flows meet financial obligations when they arise.

Roth IRA

A retirement savings account allowing individuals to contribute after-tax income, with tax-free withdrawals on both contributions and earnings after age 59½.

Traditional IRA

A Traditional IRA is a type of retirement account that allows individuals to direct pre-tax income toward investments that can grow tax-deferred until withdrawals begin at retirement age.

Deferred Annuity

A financial product that offers a stream of payments to the holder, typically starting at a future date, after an initial investment period.