If Both Imports and Exports Fell

question 173

Multiple Choice

If both imports and exports fell,

• A)AD would fall.
• B)AD would rise.
• C)AD would be unaffected.
• D)AD would rise if exports fell more than imports.
• E)AD would fall if exports fell more than imports.

---

Definitions:

Checks Outstanding

Checks that have been written and recorded in the check issuer's accounting system but have not yet been cashed or cleared by the bank.

Deposit In Transit

Funds that have been sent to a bank but have not yet been processed and added to the account balance.

Note Collected

The action of receiving payment or settling a promissory note, where one party pays the amount owed to another.

Bank Service Charges

Fees charged by a bank for the handling of accounts, provision of services, or the execution of transactions.