The foreign sector will stimulate economy activity in a country when:
A) imports exceed exports, and net exports are positive.
B) exports exceed imports, and net exports are positive.
C) imports exceed exports, and net exports are negative.
D) exports exceed imports, and net exports are negative.

Question

Quizplus · Accepted Answer

When exports exceed imports, it means the country is selling more goods and services to other countries than it is buying from them, leading to a positive net export figure. This inflow of foreign currency stimulates economic activity by increasing demand for the country's goods and services.

The Foreign Sector Will Stimulate Economy Activity in a Country