A positive level of net exports contributes directly to
A) demand in the resources market.
B) supply in the loanable funds market.
C) demand in the loanable funds market.
D) demand in the goods and services market.

Question

Quizplus · Accepted Answer

Net exports represent the value of goods and services that a country exports (sells to foreign countries) minus the value of goods and services that it imports (buys from foreign countries). Thus a positive level of net exports means that a country is exporting more than it is importing, which leads to increased demand for its goods and services in the global market. This, in turn, contributes directly to demand in the goods and services market. Therefore, option D is the correct answer. The other options (A, B, and C) are not directly related to net exports.

A Positive Level of Net Exports Contributes Directly to