Net exports usually ________ when the Australian economy is in a recession and ________ when the Australian economy is expanding.
A)increase; increase
B)decrease; increase
C)increase; decrease
D)decrease; decrease

Question

Quizplus · Accepted Answer

During a recession, domestic demand for imports typically falls, and exports may become more competitive due to a weaker currency, leading to an increase in net exports. Conversely, during economic expansion, increased domestic demand can lead to higher imports, potentially decreasing net exports.

Net Exports Usually ________ When the Australian Economy Is in a Recession