A more realistic approach has net exports varying __________ with income.
A)positively
B)independently
C)directly
D)inversely
E)None of the answers is correct

Question

Quizplus · Accepted Answer

Net exports typically vary inversely with income because as income rises, people tend to buy more imported goods and services, leading to a decrease in net exports. Conversely, as income falls, people tend to buy fewer imported goods and services, leading to an increase in net exports. Therefore, net exports are likely to decline as income rises and increase as income falls.

A More Realistic Approach Has Net Exports Varying __________ with Income