Increases in import spending _____________________,ceteris paribus.
A) raise GDP
B) lower GDP
C) are always equal to decreases in exports
D) may raise or lower GDP

Question

Quizplus · Accepted Answer

Increases in import spending, ceteris paribus, mean that more money is flowing out of the country to purchase foreign goods and services, which reduces the domestic demand and thus lowers the Gross Domestic Product (GDP).

Increases in Import Spending _____________________,Ceteris Paribus