Foreign trade will have no impact on real GDP when
A)exports exceed imports.
B)exports equal imports.
C)imports exceed exports.
D)exports equal zero.

Name: Foreign trade will have no impact on real GDP when A)exports exceed imports. B)exports equal imports. C)imports exceed exports. D)exports equal zero.
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Question

Quizplus · Accepted Answer

When exports equal imports, there is no net impact on the economy. The money earned from exports is equal to the money spent on imports, which means there is no increase or decrease in real GDP.

Foreign Trade Will Have No Impact on Real GDP When