If Net Exports Increase by $450 Billion at Every Level

question 3

Multiple Choice

If net exports increase by $450 billion at every level of income, equilibrium real GDP demanded will

• A)increase by $450 billion
• B)decrease by $450 billion
• C)increase by more than $450 billion because of the multiplier effect
• D)increase by less than $450 billion
• E)decrease by more than $450 billion because of the multiplier effect

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Definitions:

Internal Control

Internal Control refers to the processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Task Responsibility

Assignment of accountability and authority to a person or team for the completion of a specific task or project component.

Segregation Of Duties

A control activity that aims to reduce the risk of errors and fraud by dividing responsibilities among different people in an organization.

Collusion

A secret agreement or cooperation among parties for a fraudulent, illegal, or deceitful purpose, especially to manipulate prices or competition in the market.