Question Details

If an American firm produces goods that are sold to a German household, then



1) An increase in exports of goods or services with no change in imports of goods or services
A) decreases GDP.
B) increases GDP.
C) may increase or decrease GDP depending on whether it is the export of goods or the
export of services that increased.
D) has no effect on GDP.
2) By itself, an increase in exports
A) increases GDP.
B) decreases GDP.
C) means imports decrease by the same amount.
D) can either increase or decrease GDP, depending on whether the exports are durable or
nondurable.
3) If Ford sells 200 Explorers for a total of $400,000 to Germany, while the United States imports
100 BMWs for a total of $500,000 from Germany,
A) U.S. GDP increases because it sells more Explorers.
B) U.S. GDP decreases because net exports are negative.
C) Germanyʹs GDP decreases.
D) U.S. net exports is positive.
4) An U.S. firm buys a new industrial sewing machine from a company located in France. Which
of the following is true?
I. U.S. net exports decrease.
II. U.S. investment increases.
A) only I
B) only II
C) both I and II
D) neither I nor II
5) If an American firm produces goods that are sold to a German household, then
A) German GDP increases but not U.S. GDP.
B) U.S. GDP increases.
C) the transaction is considered an export in the German GDP accounts.
D) net exports in the United States will not change because an export immediately generates
an offsetting import.




Economics Assignment Help, Economics Homework help, Economics Study Help, Economics Course Help