If Net Exports Are Negative, Spending by Households, Firms, and Government

question 132

True/False

If net exports are negative, spending by households, firms, and government must be greater than the income people earn in producing GDP.

---

Definitions:

Firms

Businesses or enterprises that engage in commercial, industrial, or professional activities, whether for profit or not.

Society

A group of individuals living together in a more or less ordered community with shared laws, traditions, and values.

Individuals

Single human beings, as opposed to groups or organizations, considered as single entities.

Marginal Benefits

The additional benefits received from the consumption of one more unit of a good or service.