A Change in Imports Caused by Rising U

question 195

Multiple Choice

A change in imports caused by rising U.S. incomes is

• A) an increase in autonomous expenditure.
• B) a decrease in autonomous expenditure.
• C) an increase in induced exports.
• D) a change in induced expenditure.

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Definitions:

Floating Exchange Rates

A currency valuation system that allows the value of a currency to fluctuate according to the foreign exchange market.

Pesos

The currency used in several Latin American countries, including Mexico and Colombia, often symbolized by the "$" sign.

Investments

The action or process of allocating capital or resources to an entity or project with the expectation of obtaining an additional income or profit.

Dollar

The official currency of several countries, including the United States, known for its significant role in international trade and finance.