Which of the following statements about the relationships between the domestic and international economy is true?
A) Domestic sales of goods and services to a foreign nation are always equal to domestic purchases of goods and services from the same nation.
B) Total goods and services produced and sold domestically by domestic firms plus imports are equal to the total domestic production plus exports.
C) GDP = GNE + (exports - imports) .
D) Intermediate goods and services purchased by domestic firms from foreign firms are equal to international sales of intermediate goods to foreign firms.
Correct Answer:
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