If We Consider the Equation PAE = a + BY the Part

question 14

Multiple Choice

If we consider the equation PAE = A + bY the part of the equation that relates to autonomous sources of spending is:

• A) b
• B) Y
• C) A
• D) PAE

---

Definitions:

Trade

The act of buying, selling, or exchanging goods and services between people or entities within or across borders.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors.

Televisions

Electronic devices designed for the reception and display of audiovisual content transmitted over airwaves or through cable systems.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling more efficient trade.