Which of the following both reduce net exports?
A)exports rise,imports rise
B)exports rise,imports fall
C)exports fall,imports rise
D)exports fall,imports fall

Question

Quizplus · Accepted Answer

A decrease in exports implies a decrease in the purchase of domestic goods and services by foreigners, which reduces inflows of foreign currency. Conversely, an increase in imports implies an increase in the purchase of foreign goods and services by domestic residents, resulting in an outflow of foreign currency. Therefore, a decrease in exports and an increase in imports both reduce net exports.

Which of the Following Both Reduce Net Exports