An Increase in Net Exports

question 363

Multiple Choice

An increase in net exports

• A) causes GDP to increase.
• B) causes GDP to decrease.
• C) causes an increase in imports of the same size.
• D) can cause GDP to either increase or decrease, depending on whether the exports are durable or nondurable.

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Definitions:

Management's Discussion

An analysis provided by the management of a company, typically found in the annual report, detailing past performance and future outlook.

Stock Price

The cost of purchasing a share of a company’s stock in the stock market.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales revenue.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.