Which of the following would decrease net exports in the United States?
A)An American party planner purchases 350 piñatas from Mexico.
B)The government of Mexico purchases 2,000 Dell laptop computers from the United States.
C)A Mexican citizen purchases 100 shares of stock in IBM.
D)The U.S.government donates $25 million to Mexico to help victims of a hurricane in Mexico.

Question

Quizplus · Accepted Answer

Purchasing goods from another country (imports) increases the import component of the net exports calculation, thereby decreasing net exports. Choices B, C, and D do not directly affect goods and services being exported or imported.

Which of the Following Would Decrease Net Exports in the United