Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Net exports are calculated by subtracting the value of a country's imports from the value of its exports. This indicates the net flow of goods and services between the country and the rest of the world. Options A and C are incorrect because they describe either imports or exports, but not both. Option B is incorrect because transfer payments refer to payments made without the expectation of receiving goods or services in return, and are not limited to foreign firms.

Which of the Following Statements Is Correct