If All Other Factors Are Held Constant, an Increase in Imports

question 157

Multiple Choice

If all other factors are held constant, an increase in imports

• A) causes an increase in exports of the same size.
• B) causes Gross Domestic Product (GDP) to increase.
• C) causes Gross Domestic Product (GDP) to decrease.
• D) can cause Gross Domestic Product (GDP) to increase or decrease, depending on whether the imports are purchased by consumers or by business firms.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (or return) of an investment by the cost of the investment.

Training

The process of enhancing the skills, capabilities, and knowledge of employees for performing specific jobs.

ROI Calculation

A financial metric used to evaluate the efficiency and profitability of an investment, calculated as the return on investment divided by the cost of the investment.

Financial Benefits

Economic advantages or gains, such as increased income, cost savings, or improved financial performance.