Which of the Following Would Be True If the Exports

question 21

Multiple Choice

Which of the following would be true if the exports of a country fell more than its imports?

• A)The country's budget deficit would decrease.
• B)The country's aggregate supply would increase.
• C)The country's aggregate demand would decrease.
• D)The country's aggregate demand would increase.
• E)The country's aggregate demand would remain unaffected.

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Definitions:

Compounded Quarterly

This refers to the method where interest on a financial product is calculated and added to the principal sum every three months.

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest from previous periods on a monthly basis.

RRSP

Registered Retirement Savings Plan, a savings account, registered with the Canadian government, that defers income taxes on retirement savings until withdrawal.

Accumulate

The act of gathering or collecting over a period of time, often resulting in an increase in quantity.