The value of net exports is also the value of:
A) net investment.
B) net saving.
C) national saving.
D) the excess of national saving over domestic investment.

Question

Quizplus · Accepted Answer

The value of net exports is equivalent to the difference between a country's total savings and its total domestic investments. This is because if a country saves more than it invests domestically, the excess savings are typically used to purchase foreign assets, resulting in a positive net export value. Conversely, if a country invests more domestically than it saves, it must borrow from foreign sources, leading to a negative net export value.

The Value of Net Exports Is Also the Value Of