Answer the Question on the Basis of the Following Table

question 122

Multiple Choice

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures,I_g is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of other question using the same table,unless otherwise stated. $\begin{array}{c}\begin{array}{c}\underline{\text {Price Level}}\\128 \\125 \\122 \\119 \\116\end{array}\begin{array}{c}\underline{\text {C}} \\ \$ 18 \\20 \\22 \\24 \\26\end{array}\begin{array}{c}\underline{\mathrm{I}_{\mathrm{g}} }\\ \$ 2 \\4 \\6 \\8 \\10\end{array}\begin{array}{c}\underline{\text {G }}\\ \$ 3 \\3 \\3 \\3 \\3\end{array}\begin{array}{c}\underline{\text {X }}\\\$ 1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\underline{\text {M}} \\ \$ 5 \\4 \\3 \\2 \\1\end{array}\begin{array}{c}\underline{\text {Real GDP}} \\ \\\\\\ \\\\\end{array}\end{array}$
Refer to the table.A decline in the international value of the dollar would:

• A) increase the values in columns (5)and (6)and reduce aggregate demand.
• B) decrease the values in columns (5)and (6)and increase aggregate demand.
• C) decrease the values in column (5),increase the values in column (6),and reduce aggregate demand.
• D) increase the values in column (5),decrease the values in column (6),and increase aggregate demand.

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Definitions:

Dissolution

The process of legally dissolving or ending an entity, such as a corporation or partnership.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but is backed by the general creditworthiness and reputation of the issuer.

Creditor/Debtor

A relationship where one party (the creditor) lends money or extends credit, and the other party (the debtor) owes the money.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.