Assume that imports rise and exports are constant.Meanwhile,gross domestic product (GDP),investment,and government spending remain constant.What can be inferred by this?

Question

Quizplus · Accepted Answer

Consumption has increased because imports have risen, which means that more goods and services are being purchased from abroad. This increase in imports must be offset by an increase in consumption, since GDP, investment, and government spending are all constant.

Assume That Imports Rise and Exports Are Constant