When exports exceed imports, all of the following are true except:
A) net capital outflows are positive.
B) net exports are positive.
C) domestic investment exceeds domestic saving.
D) domestic output exceeds domestic spending.

Question

Quizplus · Accepted Answer

When exports exceed imports, it means that net exports are positive, indicating that a country is selling more abroad than it is buying from abroad. This situation does not necessarily mean that domestic investment exceeds domestic saving. In fact, a positive net export situation often indicates that a country is saving more than it is investing domestically, as it is able to lend abroad (positive net capital outflow) and domestic output exceeds domestic spending, allowing for the excess to be exported.

When Exports Exceed Imports, All of the Following Are True