A _______ relationship exists between domestic income and net export spending.
A) negative
B) positive
C) secondary
D) constant

Question

Quizplus · Accepted Answer

A negative relationship exists between domestic income and net export spending because as domestic income increases, imports typically increase (since people have more income to spend on foreign goods), leading to a decrease in net exports (exports minus imports). Conversely, if domestic income decreases, people spend less on imports, potentially increasing net exports.

A _______ Relationship Exists Between Domestic Income and Net Export