If in the Long Run, Any Government Policy That Increases

question 208

Multiple Choice

If in the long run, any government policy that increases exports

• A) also increases imports.
• B) decreases imports.
• C) has no impact on imports.
• D) makes imports become negative.

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Definitions:

Net Working Capital

Current assets minus current liabilities.

Current Ratio

A financial metric that assesses a firm's capacity to meet immediate liabilities using its current assets.

Cash Conversion Cycle

A metric that shows the time span between a company's outlay of cash and its collection of receivables; a measure of liquidity.

Trade Credit

Credit extended by a seller to a buyer allowing the latter to purchase goods or services immediately and pay for them at a later date.