If the imports of goods and services exceed exports, GDP will be higher.

Name: If the imports of goods and services exceed exports, GDP will be higher.
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Question

Quizplus · Accepted Answer

This statement is false. If imports of goods and services exceed exports, it means the country is running a trade deficit. A trade deficit has a negative impact on GDP, as it means the country is spending more on imports than it is earning from exports. Only when exports exceed imports will GDP increase.

If the Imports of Goods and Services Exceed Exports, GDP