Which of the Following Best Explains What Happens When a Business

question 56

Multiple Choice

Which of the following best explains what happens when a business firm purchases a drill press manufactured in Germany?

• A)There will be an increase in exports.
• B)There will be an increase in import spending.
• C)There will be an increase in investment expenditures.
• D)There will be an increase in both investment expenditures and import spending.
• E)There will be a decline in investment expenditures and an increase in import spending.

---

Definitions:

Rental Cost

The price paid for the temporary use of a good, service, or property owned by another entity.

Capital

Resources or assets used in the production of goods and services.

College Education

Refers to the post-secondary education that students receive at universities, colleges, and other institutions, offering degrees and certifications beyond high school education.

Energy-Saving Machine

A type of machinery or device designed to use less energy for the same level of output, contributing to efficiency and reduced environmental impact.