If U.S.exports of goods and services exceed imports
A)GDP in the United States will be less than the sum of consumption,investment,and government purchases.
B)GDP in the United States will exceed the sum of consumption,investment,and government purchases.
C)net exports for the United States equals gross investment.
D)net exports for the United States equals gross savings.

Question

Quizplus · Accepted Answer

When U.S. exports of goods and services exceed imports, there is a trade surplus, which leads to an increase in GDP. This is because GDP is calculated as the sum of consumption, investment, government purchases, and net exports. Since net exports are positive, it means that the value of exports is greater than the value of imports, which adds to the overall GDP. Therefore, GDP in the United States will exceed the sum of consumption, investment, and government purchases.

If U.S.exports of Goods and Services Exceed Imports