If Exports and Imports Both Rose, but Exports Rose Less

question 148

Multiple Choice

If exports and imports both rose, but exports rose less than imports,

• A)AD would fall.
• B)AD would rise.
• C)AD would be unaffected.
• D)AD could either increase or decrease.

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Definitions:

Income Statement Accounts

Accounts found on the income statement, which report a company’s financial performance over a specific period, including revenues, expenses, gains, and losses.

Temporary Accounts

Accounts in accounting that are used to track transactions within a financial period, which are then transferred to permanent accounts at the end of the period.

Interest Expense

The cost incurred by an entity for borrowed funds, which may include the cost of bonds, loans, convertible debt, and lines of credit.

Interest Payable

The amount of interest expense that has been incurred during a period but not yet paid to creditors.