Net exports ________.
A)are heavily determined by foreign demand for domestic goods
B)are heavily determined by domestic demand for domestic goods
C)are independent of domestic interest rate fluctuations
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Net exports are determined by the demand for domestic goods from foreign countries. Domestic demand for domestic goods (which is included in GDP) does not affect net exports directly. Interest rate fluctuations may have an impact on net exports, but it is not necessarily the driving factor.

Net Exports ________