Net exports usually ________ when the U.S.economy is in a recession and ________ when the U.S.economy is expanding.
A)increase; increase
B)decrease; increase
C)increase; decrease
D)decrease; decrease

Question

Quizplus · Accepted Answer

Net exports usually increase when the U.S. economy is in a recession because imports typically fall as domestic demand weakens. Conversely, net exports decrease when the U.S. economy is expanding, as an increase in domestic demand often leads to more imports.

Net Exports Usually ________ When the U