________ will lead to an increase in the GDP of a country,all other variables remaining constant.
A) An increase in imports
B) An increase in exports
C) A fall in the expenditure on investment goods
D) A fall in the expenditure incurred by the government

Question

Quizplus · Accepted Answer

An increase in exports will lead to an increase in the GDP of a country because it represents an increase in the value of goods and services produced domestically and sold to foreign markets. This will increase income and employment, which will then translate to higher consumption and investment within the domestic economy as well. The other choices provided would have negative effects on the economy, as an increase in imports would represent a decrease in domestic production and investment, and decreases in government and investment expenditures would likely lead to decreased economic activity and lower GDP.

________ Will Lead to an Increase in the GDP of a Country,all