-In the above private open economy exports are __________ and imports are __________ domestic GDP:
A) inversely related to;directly related to
B) independent of;inversely related to
C) independent of;dependent of
D) directly related to;independent of

Question

-In the above private open economy exports are __________ and imports are __________ domestic GDP:
A) inversely related to;directly related to 
B) independent of;inversely related to 
C) independent of;dependent of 
D) directly related to;independent of

Quizplus · Accepted Answer

In a private open economy, exports are generally independent of domestic GDP because they depend on foreign demand. Imports, however, are dependent on domestic GDP as higher domestic income typically leads to increased demand for foreign goods.

-In the Above Private Open Economy Exports Are __________ and Imports