Other Things Constant, If Domestic Consumers Purchase Fewer Foreign Goods

question 15

Multiple Choice

Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP in the short run:

• A) GDP will rise
• B) GDP will fall
• C) Foreign countries' GDP will rise
• D) There will be no change in GDP in this country

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Definitions:

Net Position

The difference between the total assets and total liabilities of an entity, representing its net worth or equity value.

Fund Balance

The net assets of a government fund, calculated as the difference between the fund's assets and liabilities, indicating the financial health or resources available to the fund.

Equity Method

An accounting method for recording investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net income or loss.