If the domestic income of a nation's citizens decreases, net exports will likely:
A) increase.
B) decrease.
C) remain constant.
D) There is not enough information to determine what will happen.

Question

Quizplus · Accepted Answer

When domestic income decreases, citizens tend to buy fewer imported goods, leading to a decrease in imports. This can result in an increase in net exports, assuming exports remain constant.

If the Domestic Income of a Nation's Citizens Decreases, Net