A domestic economic expansion tends to ________ imports and thus ________ net exports.

Name: A domestic economic expansion tends to ________ imports and thus ________ net exports.
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Question

Quizplus · Accepted Answer

A domestic economic expansion leads to an increase in domestic consumption and investment, which leads to increased demand for imports. As a result, imports increase, and net exports decrease. Therefore, option A, indicating that an expansion increases imports and decreases net exports, is the correct choice.

A Domestic Economic Expansion Tends to ________ Imports and Thus