Asked by Emily Snoke on Jul 11, 2024
Verified
Net exports is a negative number whenever
A) a nation's exports of goods and services exceed its imports.
B) a nation's imports of goods and services exceed its exports.
C) the nation's gross investment is on the decline.
D) the nation's gross savings rate is on the decline.
Net Exports
The value of a country's total exports minus its total imports, indicating whether a country has a trade surplus or deficit.
Gross Investment
Total amount of investment in an economy, including investments in new capital assets and replacement of depreciated assets.
Gross Savings
The total amount of savings accumulated by the economy before depreciation is taken into account.
- Formulate and expound on the role of trade balances and net exports in affecting the Gross Domestic Product.
Verified Answer
RA
rossy almeidaJul 14, 2024
Final Answer :
B
Explanation :
Net exports is the difference between a nation's exports of goods and services and its imports. When imports exceed exports, the net exports figure is negative. Therefore, net exports is a negative number whenever a nation's imports of goods and services exceed its exports.
Learning Objectives
- Formulate and expound on the role of trade balances and net exports in affecting the Gross Domestic Product.