Which statement is consistent with negative net exports?
A) Exports are greater than imports.
B) Net capital outflow is positive.
C) Exports are less than imports.
D) Net capital outflow is zero.

Question

Quizplus · Accepted Answer

Negative net exports mean that a country is importing more goods and services than it is exporting, which results in a trade deficit. Therefore, option C, "exports are less than imports," is the correct statement. Option A, "exports are greater than imports," would indicate a trade surplus, which is the opposite of a negative net export. Option B, "net capital outflow is positive," and option D, "net capital outflow is zero," are not necessarily related to net exports and do not provide any information about a country's trade balance.

Which Statement Is Consistent with Negative Net Exports