If the domestic income of a nation's citizens increase thus causing consumption spending to increase, then we generally expect net export spending to:

Question

Quizplus · Accepted Answer

When domestic consumption spending increases, it is likely that citizens will buy more foreign goods and services as well, leading to an increase in imports. This increase in imports will cause net export spending to decrease, as the country is buying more than it is selling.

If the Domestic Income of a Nation's Citizens Increase Thus