If a USCitizen Buys a Television Made in Korea by a Korean

question 51

Multiple Choice

If a U.S.citizen buys a television made in Korea by a Korean firm,then

• A)U.S.net exports decrease and U.S.GDP decreases.
• B)U.S.net exports are unaffected and U.S.GDP decreases.
• C)U.S.net exports are unaffected and U.S.GDP is unaffected.
• D)U.S.net exports decrease and U.S.GDP is unaffected.

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Definitions:

Revolving Credit Agreement

A credit facility that allows a borrower to obtain multiple advances within a specified limit to finance short-term needs.

Committed Funds

Resources that are allocated or earmarked for a specific investment or project, often under formal agreement to ensure their availability over the commitment period.

Undercapitalized

A condition where a company does not have sufficient capital to conduct normal business operations effectively.

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.