Net exports are negative when
A)a nation's imports of goods exceeds its exports.
B)a nation's imports of services exceeds its exports.
C)a nation's exports of goods and services exceeds its imports.
D)a nation's imports of goods and services exceeds its exports.

Question

Quizplus · Accepted Answer

Net exports refer to the difference between a nation's exports and imports. If a nation's imports of goods and services exceed its exports, then the net exports will be negative. This indicates that the nation is importing more than it is exporting and is running a trade deficit.

Net Exports Are Negative When