As a Nation's GDP Increases, That Nation's

question 354

Multiple Choice

As a nation's GDP increases, that nation's

• A) autonomous consumption increases.
• B) autonomous consumption decreases.
• C) exports increase.
• D) imports increase.

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Definitions:

Tangible Products

Physical items that can be seen, touched, and used, as opposed to services or digital goods.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body or corporation, or rights to ownership as represented by an option.

Trade Balance

The difference in value between a country's imports and exports over a given period, a component of a country's balance of payments.

Merchandise Exports

Goods produced within a country and sold to customers in another country, contributing to the country's gross domestic product.