If net exports are positive,
A)net foreign investment is also positive.
B)capital inflows must be greater than capital outflows.
C)the currency will appreciate.
D)net foreign investment is negative.
E)Both A and B are correct.

Question

Quizplus · Accepted Answer

When net exports are positive, it means a country exports more than it imports, leading to a net inflow of domestic currency from foreign markets. This scenario corresponds with positive net foreign investment, as the country is investing more abroad than foreign entities are investing in the domestic market.

If Net Exports Are Positive