Which of the Following Is Most Likely to Increase the Exports

question 168

Multiple Choice

Which of the following is most likely to increase the exports of a country?

• A)The government gives subsidies to firms that export goods or services.
• B)The government reduces the size of the budget surplus.
• C)Political instability within the country increases modestly.
• D)None of the above will increase exports.

---

Definitions:

EBIT

Earnings Before Interest and Taxes, a financial metric indicating a company's operating profitability by excluding interest and taxes from earnings.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expenses are a non-operational cost affecting the company’s net income.

Times Interest Earned Ratio

A financial metric used to evaluate a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Operating Costs

Operating costs are the expenses associated with the day-to-day operations of a business, including costs for rent, utilities, payroll, and raw materials.