If net exports increase, but neither government expenditure nor net taxes change, investment must increase.

Question

Quizplus · Accepted Answer

If net exports increase and government expenditure and net taxes remain unchanged, it does not necessarily mean that investment must increase. The increase in net exports could lead to an increase in national income, which could affect savings, consumption, or other components of GDP without directly impacting investment.

If Net Exports Increase, but Neither Government Expenditure nor Net