If in the long run, any government policy that increases exports
A) also increases imports.
B) decreases imports.
C) has no impact on imports.
D) makes imports become negative.

Question

Quizplus · Accepted Answer

When a government policy increases exports, it typically leads to an increase in the demand for the country's goods and services from foreign markets. As a result, the country's producers may need more inputs to satisfy the higher demand, which could lead to an increase in imports. Therefore, any government policy that increases exports also increases imports in the long run.

If in the Long Run, Any Government Policy That Increases