If total exports exceed total imports,other things being constant,then
A)net exports are negative.
B)net exports are positive.
C)GDP falls.
D)investment rises.

Question

Quizplus · Accepted Answer

If total exports exceed total imports, it means that net exports are positive. This implies that the country is exporting more goods and services than it is importing, which leads to an increase in the demand for domestic goods and services. This, in turn, leads to an increase in production and, hence, an increase in GDP. Investment may or may not rise as a result, but the correct answer is B.

If Total Exports Exceed Total Imports,other Things Being Constant,then