If U.S. Net Exports Are Negative

question 3

Multiple Choice

If U.S. net exports are negative,

• A)U.S. consumers are spending less on foreign goods than foreign consumers are spending on U.S. goods
• B)U.S. consumers are spending more on foreign goods than foreign consumers are spending on U.S. goods
• C)the government should promote imports to balance international trade
• D)U.S. consumers are spending more on foreign goods than they are spending on U.S. goods
• E)U.S. disposable income is low

---

Definitions:

Independent Variables

Variables in an equation or model that are assumed to influence or cause changes in dependent variables.

Regression Model

A statistical tool used to predict the value of a dependent variable based on the value(s) of one or more independent variables.

Multicollinearity

A statistical phenomenon where several independent variables in a regression model are highly linearly related.

Dependent Variable

In statistical modeling, this is the variable that is being tested and measured to see if it is influenced by one or more independent variables.