U.S. Imports Are

question 205

Multiple Choice

U.S. imports are

• A) not added to U.S. GDP because they are produced abroad
• B) added to U.S. GDP because they are consumed domestically
• C) added to U.S. GDP because they represent an increase in inventories
• D) added to U.S. GDP as government purchases because the government decides what goods may be imported
• E) not added to U.S. GDP because they are intermediate goods

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Definitions:

Behavioral Finance

An area of study focusing on how psychological influences and biases affect the financial behaviors of investors and financial markets.

Rational

Characterized by clear, logical thinking, often referring to decision-making that maximizes benefit.

Irrational

Acting without reason or understanding, often defying logical or expected behavior, particularly in economic contexts referring to market participants.

Weak-form Efficient

A form of market efficiency that asserts all past trading information is fully reflected in stock prices, and thus, technical analysis cannot consistently produce excess returns.