What's the impact of the foreign trade factor ingesting when it joins the revenue-spending model ?

What's the impact of the foreign trade factor ingesting when it joins the revenue-spending model ?

Expert Solution

1. The revenue – spending model:-
A revenue expenditure is a formation that is charged to expense as soon as the cost is appeared. It is the part of government expenditure that does not result in the alteration of assets, salaries, wages, pensions, subsidies and interest fall are examples of revenue expenditure.
The model basically explains that we produce as many goods as will sell on the market and steady in production and expenditure are tied to keep an economy.
2. The impact of the foreign Trade :-
The foreign trade has both positive and negative impact on the income expenditure model. If the foreign trade has positive side it means exports are greater than imports then the Real GDP increases. If the foreign trade has negative side it means imports are greater than exports then the Real GDP falls.

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Rahul Sunny answered 1 year ago

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