Asked by Kaitlan Phillips on Apr 28, 2024
Verified
Net exports is a negative figure when
A) a nation's exports of goods and services exceed its imports
B) depreciation exceeds gross private domestic investment
C) the economy's stock of capital is declining
D) a nation's imports of goods and services exceed its exports
Net Exports
The balance of a nation's trade, measured by subtracting its imports from its exports of goods and services.
Depreciation
The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value of an asset over time due to use, wear and tear, or obsolescence.
Gross Private Domestic Investment
The total spending on capital goods by private businesses and households within a country's economy, not including expenditures by the government.
- Conduct analysis on trade balances and net exports to understand their effect on GDP.
Verified Answer
MB
Maher BakhshMay 02, 2024
Final Answer :
D
Explanation :
Net exports is a measure of the difference between the value of a nation's exports of goods and services and its imports of goods and services. When a nation's imports of goods and services exceed its exports, the net exports figure will be negative.
Learning Objectives
- Conduct analysis on trade balances and net exports to understand their effect on GDP.