Net Exports ________

question 6

Multiple Choice

Net exports ________.

• A)are heavily determined by foreign demand for domestic goods
• B)are heavily determined by domestic demand for domestic goods
• C)are independent of domestic interest rate fluctuations
• D)all of the above
• E)none of the above

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Definitions:

Perfectly Inelastic

A demand situation in which the quantity demanded does not change in response to a change in price.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare among entities in the economy.

Rational Choice Theory

An economic theory that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Public Interest

The well-being of the general public, often considered within the context of government policy-making.