If U.S. net exports were a negative number:
A) U.S. exports would exceed U.S. imports.
B) the overall effect would be a leakage from the U.S. circular flow of economic activity.
C) more would be spent by foreign buyers on U.S. goods than by U.S. buyers on foreign goods.
D) all of the above.

Question

Quizplus · Accepted Answer

Net exports being a negative number means that the U.S. imports more than it exports. This situation is considered a leakage because money is flowing out of the U.S. economy to purchase foreign goods, rather than staying within the domestic economy.

If U.S. Net Exports Were a Negative Number