Asked by Kaitlan Phillips on Apr 28, 2024

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Net exports is a negative figure when

A) a nation's exports of goods and services exceed its imports
B) depreciation exceeds gross private domestic investment
C) the economy's stock of capital is declining
D) a nation's imports of goods and services exceed its exports

Net Exports

The balance of a nation's trade, measured by subtracting its imports from its exports of goods and services.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value of an asset over time due to use, wear and tear, or obsolescence.

Gross Private Domestic Investment

The total spending on capital goods by private businesses and households within a country's economy, not including expenditures by the government.

  • Conduct analysis on trade balances and net exports to understand their effect on GDP.
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Maher BakhshMay 02, 2024
Final Answer :
D
Explanation :
Net exports is a measure of the difference between the value of a nation's exports of goods and services and its imports of goods and services. When a nation's imports of goods and services exceed its exports, the net exports figure will be negative.