Which of the Following Statements Represents a Correct and Sequentially

question 27

Multiple Choice

Which of the following statements represents a correct and sequentially accurate economic explanation?

• A) The (U.S.)dollar appreciates,net exports rise,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
• B) The interest rate falls,investment rises,total expenditures on goods and services rises,AD falls,and the AD curve shifts leftward.
• C) Wealth increases,consumption rises,total expenditures on goods and services rises,AD falls,and the AD curve shifts rightward.
• D) (Business)expectations about future sales become more positive,investment rises,total expenditures on goods and services rises,AD rises,and the AD curve shifts rightward.
• E) Foreign real national income rises,net exports rise,total expenditures on goods and services falls,AD rises,and the AD curve shifts rightward.

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Definitions:

Selling Prices

The price at which goods or services are offered to buyers, determined by various factors including cost, demand, and competition.

Machine-Hours

A measure of the time machines are run, used in allocating manufacturing overhead to products.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product or service.

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied to all jobs or products to allocate manufacturing overhead costs.