Net exports of goods and services increase when
A)exports of goods and services decrease and imports of goods and services do not change.
B)consumption expenditure increases.
C)exports of goods and services increase and imports of goods and services do not change.
D)consumption expenditure decreases.
E)imports of goods and services increase and exports of goods and services do not change.

Question

Quizplus · Accepted Answer

Net exports of goods and services increase when exports of goods and services increase and imports of goods and services do not change. This means that the country is selling more goods and services to other countries than it is buying from them, resulting in a positive balance of trade.

Net Exports of Goods and Services Increase When