Which of the following is one result of a nation's imports exceeding its exports?
A)National savings will exceed investment.
B)Net exports will be positive.
C)GDP will be less than the sum of consumption, investment, and government purchases.
D)GDP will be greater than the sum of consumption, investment, and government purchases.

Question

Quizplus · Accepted Answer

If a nation's imports exceed its exports, it means that it is running a current account deficit. This can lead to a situation where GDP is less than the sum of consumption, investment, and government purchases, as the excess spending on imports is not being offset by foreign demand for exports. This can also lead to a decrease in national savings and potentially a decrease in net exports.

Which of the Following Is One Result of a Nation's